Question: This table summarizes several statistics for 36 monthly returns for American Electric Power (ticker AEP) and Microsoft (MSFT) over a three-year period. Column 1 is
This table summarizes several statistics for 36 monthly returns for American Electric Power (ticker AEP) and Microsoft (MSFT) over a three-year period. Column 1 is the monthly return for AEP and Column 2 is the monthly return for MSFT Column 3 is the difference between the monthly return for AEP and the average return for AEP. Column 4 is the same for MSFT. Column 5 is Column 3 squared and Column 6 is Column 4 squared. Column 7 is the product of Column 3 and Column 4. The bottom row contains the sum of each column. Several rows are not displayed to save space. What is the standard deviation of the AEP monthly returns?
| A. | 0.039 | |
| B. | 0.041 | |
| C. | 0.043 | |
| D. | 0.045 |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
