An Asset Had Annual Returns of 13, 10, −14, 3

question 97

Multiple Choice

An asset had annual returns of 13, 10, −14, 3, and 36 percent, respectively, for the past five years. What is the standard deviation of these returns?

• A)8.96%
• B)16.05%
• C)17.92%
• D)18.09%
• E)20.03%

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Definitions:

Financial System

An intricate network of financial institutions, markets, and instruments that facilitate the exchange of funds and allocation of resources in an economy.

Business Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns, typically into companies or projects.

Debt Financing

The method of raising capital through the sale of bonds, bills, or notes to individuals or institutional investors which must be repaid at a later date.

Equity Financing

The process of raising capital through the sale of shares in a company.