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You have the following information for a risky portfolio for several recent years. Assume that the stock pays no dividends. 2008: $50.00 2009: $55.00 2010:
You have the following information for a risky portfolio for several recent years. Assume that the stock pays no dividends. 2008: $50.00
2009: $55.00
2010: 51.00
2011: $54.00
What is the standard deviation of the returns for the period?
(Step 1: Find annual holding period returns.
Step 2: Find the arithmetic average return.
Step 3: Calculate standard deviation)
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