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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
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