Solve the standard deviation of the returns

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Problem 1: Mega Corporation has the following returns for the past three years: 7 percent, 13 percent, and 10 percent. Use the following formulas to calculate the variance of the returns and the standard deviation of the returns:

Variance (r∼m)(r∼m) = expected value of (r∼m-rm)2.(r∼m-rm)2.

Standard deviation of r∼m=variance(r∼m)-----------√r∼m=variance(r∼m).

Option 1: 64.00 and 8.00 percent
Option 2: 124.00 and 11.10 percent
Option 3: 6.00 and 2.45 percent
Option 4: 30.00 and 10.00 percent

Reference no: EM132907920

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