What Is the Standard Deviation of the Returns on a Stock

question 92

Multiple Choice

What is the standard deviation of the returns on a stock given the following information?

• A)1.57 percent
• B)2.03 percent
• C)2.89 percent
• D)3.42 percent
• E)4.01 percent

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Definitions:

Sampling Distribution

The likelihood distribution of a specific statistic derived from a random sample, which is utilized to draw conclusions about the broader population that the sample represents.

Nonnormal Populations

Distributions that do not follow a normal (Gaussian) bell-shaped curve, often requiring different statistical techniques for analysis.

Sample Sizes

The count of data points or items chosen from a larger group for the purpose of statistical examination.

Pooled-variances T-test

A statistical method for comparing the means of two populations when it is assumed that both populations have equal variances.