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    Expected Return and Standard Deviation

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    Dates return on x
    1981 2.00%
    1982 3.00%
    1983 6.00%
    1984 9.00%
    1985 14.00%

    Calculate the expected return and standard deviation.

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    https://brainmass.com/business/finance/expected-return-standard-deviation-81508

    Solution Preview

    There are two ways of calculating standard deviation. I have shown both of them:

    Method 1:
    Variance and standard deviation

    X= X 2 =
    1981 0.02 0.0004
    1982 0.03 0.0009
    1983 0.06 0.0036
    1984 0.09 0.0081
    1985 0.14 0.0196
    Total= 0.34 0.0326
    n=no of observations= 5
    Mean=Expected return= ...

    Solution Summary

    The expert calculates the expected return and standard deviation.

    $2.19

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