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Determining mean and Standard Deviation of Returns

What is the approximate standard deviation of returns if over the past four years an investment returned 8.0%, -12.0%, -12% and 15.0%?

Solution Preview

Because you did not specify, I assume that this is the entire population of returns. If it is, see parts A, B. C. If it is only a sample, see parts A, D, and E.

The standard deviation is computed by taking the square root after dividing the total of the ...

Solution Summary

This solution takes you step by step through computing the mean and standard deviation of a set of investment returns.

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