.5%, -1%, -1.5%, and 0%. What is its average and tandard deviation (pick the closest one)? 0%, 1.27% 0%, 1.58% 0%, 1.41% 0%, 1.14%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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5. a stock's daily return over the past week is 1%,
1.5%, -1%, -1.5%, and 0%. What is its average and
standard deviation (pick the closest one)?
0%, 1.27%
0%, 1.58%
0%, 1.41%
0%, 1.14%
Transcribed Image Text:5. a stock's daily return over the past week is 1%, 1.5%, -1%, -1.5%, and 0%. What is its average and standard deviation (pick the closest one)? 0%, 1.27% 0%, 1.58% 0%, 1.41% 0%, 1.14%
Expert Solution
Step 1average and standard deviation

Average is also known as mean which shows the middle or central value of data. It is also called a measure of central tendency.

Standard Deviation the deviation of data from the mean or central value. If items fall far away from the central value then it indicates a high standard deviation. It is also known as a measure of dispersion.

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