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Florida Company (FC) and Minnesota Company (MC) are both service companies. Their stock returns for the past three years were as follows: FC: -5 percent,
Florida Company (FC) and Minnesota Company (MC) are both service companies. Their stock returns for the past three years were as follows: FC: -5 percent, 15 percent, 20 percent; MC: 8 percent, 8 percent, 20 percent. Calculate the standard deviations of returns for FC and MC. (Ignore the correction for the loss of a degree of freedom set out in the text.) Multiple Choice FC: 10.8 percent; MC: 5.7 percent FC: 18.7 percent; MC: 9.8 percent FC: 13.2 percent; MC: 6.9 percent FC: 6.9 percent; MC: 13.2 percent
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