Solve the following problem:
Assessing Volatility of Exchange Rate Movements
Assume you want to determine whether the monthly movements in the Polish zloty against the dollar are more volatile than monthly movements in some other currencies against the dollar. The zloty was valued at $.4602 on May 1, $.4709 on June 1, $.4888 on July 1, $.4406 on August 1, and $.4260 on September 1.
Using Excel or another electronic spreadsheet, compute the standard deviation (a measure of volatility) of the zloty's monthly exchange rate movements. Show your spreadsheet.