Calculating Standard Deviations of Stocks by Hand (Part 1 of 2)

!! error on my part, I meant “to the power of .5” which is the same as square root !!

https://linktr.ee/booksmartfinance

Calculating Standard Deviations of Stocks on Google Sheets and Excel (Part 2 of 2):
https://youtu.be/nptVZBTXZYo

Consider the following probability distribution for stocks A and B:

State: 1, 2, 3, 4, 5
Probability: .1, .3, .1, .25, .25
Return on Stock A: .08, .10, .07, .11, .12
Return on Stock B: .07, .09, .15, .05, .10

What are the standard deviations of stocks A and B?

(.1(.08-.1025)^2 + .3(.1-.1025)^2 + .1(.07-.1025)^2 + .25(.11-.1025)^2 + .25(.12-.1025)^2)^.5

σA = 0.01577

Variance Formula: σ^2

how to find standard deviation by hand
step by step work shown

Видео Calculating Standard Deviations of Stocks by Hand (Part 1 of 2) канала Booksmart Fin