Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question: **Could you double check my calculation for standard deviation. Thank you.** A. Calculate the mean and standard deviation of the following securities' returns: Year

Question:**Could you double check my calculation for standard deviation. Thank you.**

A. Calculate the mean and standard deviation of the following securities' returns:

Year Computroids Inc. Blazers Inc.

1 10% 5%

2 5% 6%

3 -3% 7%

4 12% 8%

5 10% 9%

Computroids Inc.

mean/E(r) = (10%+5% - 3% + 12% + 10%) /5 =6.8

standard deviation = sqrt{[(.1-068)2+(.05-068)2+(-.03 - 068)2+(.12-068)2+(.1-.068)2] / 5-1} = 5.418

= sqrt{[0.001 + 0.0003 + 0.0096 + 0.0027 + 0.001] / 4} =

= sqrt{0.0147/4}

= sqrt{0.0037}

= 0.0606

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

Step: 3

blur-text-image

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

Mathematics For Business

Authors: Stanley A Salzman, Charles D Miller, Gary Clendenen

8th Edition

0321357434, 9780321357434

More Books

Students also viewed these Finance questions

Question

Dont smell (i.e., too much perfume/cologne).

Answered: 1 week ago