# Expected Return and Standard Deviation

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.

Â© BrainMass Inc. brainmass.com February 24, 2021, 3:29 pm ad1c9bdddfhttps://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