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rodikova [14]
3 years ago
10

Ford Motor Company had realized returns of 5​%, 15​%, −15​%, and −5​% over four quarters. What is the quarterly standard deviati

on of returns for​ Ford?
a. 32.86​%.
b. 24.65​%.
c. 30.12​%.
d. 27.39​%.
Business
1 answer:
GuDViN [60]3 years ago
4 0

Answer: 12.91%

Explanation:

The mean is;

= (5% + 15% - 15% - 5%)/4

= 0

Standard deviation = √((∑(Return-mean)^2)/[time period-1])

= (√((5-0)^2 + (15-0)^2 + (-15-0)^2 + (-5-0)^2)/ (4 -1))

= √((25% + 225% + 225% + 25% ) / 3 )

= √(500/3)

= 12.91%

<em>NB - Options are for a different question. </em>

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