Problem
A. Six years ago, you purchased 450 shares of common stock for $34.25 per share. Since that time, the annual returns were 4.3%, (2.9%), 7.8%, (1.1%), 8.9%, and 3.8%. Based on these annual returns, calculate the stock's standard deviation and the range of returns within which you'd expect the annual return to be within 95% of the time.
B. Six years ago, you purchased 300 common shares of a company for $32.50 per share. The stock pays an annual cash dividend of $1.52. The annual returns on the stock was (8%), 12%, 7%, 2%, 4%, and 14%. Calculate the standard deviation for your stock investment.