35 Suppose Wolverine Inc. had returns of 21%, -12%, 4%, and...

35 Suppose Wolverine Inc. had returns of 21%, -12%, 4%, and 31% over the past four years. What is the standard deviation of Wolverine Inc. returns for the past four years? (Do not round intermediate calculations. Input your final answer as a percent rounded to two decimal places ie. 12.34) 00:03:45 Numeric Response

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00:02 We have to calculate the average annual return variance and standard deviation of the stocks return.

00:08 So we have to follow these steps first.

00:11 We need to calculate the average annual return return.

00:26 So average annual return is equal to sum of returns divided by number of years, which is equal to putting the values one added to 0 .28 added to 0 .12 added to 0 .04 divided by 4, which is equal to 0 .36 divided by 4.

01:12 So evaluating it we get 0 .09 or 9 % this is first.

01:21 Then second we have to calculate the variance.

01:28 So various measures the average of the squared differences from the mean.

01:37 So the formula for variance is variance is equal to return one subtracted from mean square added to return to it from mean whole square added to so on added to return n subtracted from mean whole square, which is divided by n subtracted from one now.

02:22 We have to calculate the mean average of return.

02:25 So mean is equal to one added to 0 .28 added to 0 .12 added to 0 .04 divided by 4, which is equal to 0 .36 divided by 4 is equal to we get 0 .09.

02:53 Then we have to calculate these square differences of each return.

02:58 One subtracted from 0 .09 whole square is equal to 0 .79 to 1 0 .2.

03:07 8 subtracted from 0 .09, whole square is equal to 0 .04.

03:12 7 6 0 .1...

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