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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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