An investment has returned 5%, 3%, 4%, 6%, and 7% in each of the last five years,

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An investment has returned 5%, 3%, −4%, 6%, and −7% in each of the last five years, respectively. We have decided that we want to use historical returns as a proxy for expected future returns.

What is the standard deviation of these returns?

Related Book For answer-question

Modern Advanced Accounting In Canada

ISBN: 9781259066481

7th Edition

Authors: Hilton Murray, Herauf Darrell

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Posted Date: Jul 06, 2023 11:52 PM

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An investment has returned 5%, 3%, 4%, 6%, and 7% in each of the last five years,

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Expert Answer:

To calculate the standard deviation of these returns we first need to find the average or me... View the full answer

Modern Advanced Accounting In Canada

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