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A stock had annual stock returns of-14.9%, 9.4%, and 25.3% during the past three years. What was the standard deviation of this stock's annual returns
A stock had annual stock returns of-14.9%, 9.4%, and 25.3% during the past three years. What was the standard deviation of this stock's annual returns during this period? n 11 (Hint: Use the formula for standard deviation using historical analysis we covered in class: = -e 2 Step 1: Find the stock's expected retun (E(k)) using historical analysis, which equals the arithmetic average of past returns. Step 2: Subtract E(k) from each annual return one by one, find the square of the difference, sum up squared differences Step 3: Divide the sum by n-1, where n i the number of historical returns Step 4: Take the square root to find the standard deviation of returns.)
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