Q. 8. Calculate Average Return, Sum of Deviation Squard, Variance, Square Root of the Variance TWO STOCK COMPARISON WITH RISK MICROSOFT DEVIATION Year YEAR MICROSOFT RETURN MINUS AVERAGE RETURN IN DEVIATION IN DEVIATI NUMBER SQUARE PERCENTA 2009 52.0% = 2 2008 -44.3% 3 2007 24.0% = 2006 18.3% = UI A 2005 0.4% 2004 25.0% 11 a SUM OF RETURN Average Return = Sum /6 Sum of Deviation Squared VARIANCE = SUM / (6-1) Square Root of the VARIANCEWALGREEN DEVIATION | DEVIATION AVERAGE Year IN DEVIATION YEAR WALGREEN MINUS IN RETURN SQUARED PERCENTAGE NUMBERS 2009 64.7% IN 2008 -32.3% = W 2007 -13.4% = A 2006 4.0% = 2005 15.3% a UI 2004 5.4% 1I