Calculate the Standard Deviation of the Following Rates of Return

question 66

Multiple Choice

Calculate the standard deviation of the following rates of return:

• A)10.79 percent
• B)12.60 percent
• C)13.48 percent
• D)14.42 percent
• E)15.08 percent

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Definitions:

Money Supply

The all-inclusive measure of monetary resources present in an economy at a specific juncture.

Interest Rates

The cost of borrowing money or the return for investing, typically expressed as a percentage of the principal, varying over time based on economic conditions.

Deposit Expansion Multiplier

The ratio that measures the potential increase in total deposits in the banking system generated from an increase in primary deposits.

Excess Reserves

Funds that banks hold over and above the required reserve ratio set by a central banking authority, often for safety or emergency purposes.