Sun Corporation Has Had Returns of -6 Percent, 16 Percent

Multiple Choice

Sun Corporation has had returns of -6 percent, 16 percent, 18 percent, and 28 percent for the past four years. Calculate the standard deviation of the returns using the correction for the loss of a degree of freedom shown below.
When variance is estimated from a sample of observed returns, we add the squared deviations and divide by N -1, where N is the number of observations. We divide by N -1 rather than N to correct for a loss of a degree of freedom. The formula is
Variance(

_m ) =

Where

_m is the market return in period t and r_m is the mean of the values of r_mt.

A) 11.6 percent
B) 14.3 percent
C) 13.4 percent
D) 14.0 percent