A Stock Produced Returns of 11 Percent, 19 Percent, and 2

question 8

Multiple Choice

A stock produced returns of 11 percent, 19 percent, and 2 percent over three of the past four years, respectively.The arithmetic average for the past four years is 9 percent.What is the standard deviation of the stock's returns for the four-year period?

• A)5.46 percent
• B)8.54 percent
• C)9.09 percent
• D)6.83 percent
• E)7.70 percent

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Definitions:

Spherical

Relating to a shape or object that is perfectly round and symmetrical in all directions, similar to a ball.

Circular

Pertaining to or shaped like a circle.

Diameter

A straight line passing from side to side through the center of a body or figure, especially a circle or sphere, and representing its widest part.