The rates of return of portfolioMin Table 8.4 are8% (), +14% (), 8% (), and 14% ().
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The rates of return of portfolioMin Table 8.4 are−8% (♣), +14% (♦), 8% (♥), and 14% (♠). The deviations from the mean are −15%, 7%, 1%, and 7%.When squared, they are 225%%, 49%%, 1%%, and 49%%. The sum is 324%%; the average is 81%%. Thus, the standard deviation is indeed 9%.
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