Calculate the Standard Deviation of an Investment with Five Year

question 134

Multiple Choice

Calculate the standard deviation of an investment with five year returns of 15%, 10%, 5%, (5%) and (10%) .

• A) 8.37%
• B) 9.37%
• C) 10.37%
• D) 11.37%
• E) 12.37%

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Definitions:

Secured

Pertaining to loans or debts backed by collateral, ensuring protection for the lender in case of default by the borrower.

Consumer Debts

Debts incurred for personal, as opposed to business, needs.

Secured Debt

A type of debt that is backed by collateral, providing the lender with a claim to the asset if the debt is not repaid.

Mortgage

A loan specifically used to purchase real estate whereby the property itself serves as security for the loan.