Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Over the past four years, a stock produced returns of 13, 6, -5, and 18 percent, respectively. What is the standard deviation of these returns?

image text in transcribed

Over the past four years, a stock produced returns of 13, 6, -5, and 18 percent, respectively. What is the standard deviation of these returns? What would be the standard deviation of these returns if they were exactly twice the return shown for each year? If the return in the third year was +5% instead of -5%, would the risk of the stock measured by standard deviation increase or decrease

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Rockin Your Business Finances

Authors: Chrstine Odle

1st Edition

0999135104, 9780999135105

More Books

Students also viewed these Finance questions