8:26 l LTE Ch 12 - Expected returns and varian... How to find the Expected Return and Standard Deviation of A STOCK GIVEN RETURNS PER PERIOD (WITHOUT PROBABILITIES) Chapter 12 Exercise 1 - Find the Expected Return and Standard deviation for the stock whose data in given below Ri Ri- r bar (Ri - rbar)^2 1st step: Find E(R), the average of the stock returns. 3% 15% E(R)= rbaru -2% 2nd step: Find Ri - E(R) for each period Fill in the column above Year 1 2 3 4 5 6 7 -9% 8% - 13% 20% 3rd step: Square the numbers found in step 2. 4th step: Sum the numbers of step 3. TOTAL (n-1) = VARIANCE STAND. DEV. 5th step: Find the VARIANCE, which is the number of step 4 divided by (n-1) variance = total /(n-1) standard deviation = sa root of variance