Question

PLEASE EXPLAIN HOW TO SOLVE USING EXCEL ONLY. THANKS. TSLAZ had returns of 0.08, -0.01, 0.11 and -0.03 during the last four "periods" Can you calculate the standard deviation of the returns? Type your answer as decimal (i.e. 0.052 and not 5.2%). Round your answer to the nearest four decimals if needed.

Answer 1

To calculate the standard deviation of returns using Excel, follow these steps:

1.Open a new Excel spreadsheet.

2.In column A, enter the returns for TSLAZ in consecutive cells. Place 0.08 in cell A1, -0.01 in cell A2, 0.11 in cell A3, and -0.03 in cell A4.

3.In a blank cell, use the following formula to calculate the standard deviation of the returns:

=STDEV(A1:A4)

4.Press Enter to get the result.

For example, if you have entered the returns as mentioned above, your formula would look like this:

=STDEV(A1:A4)

After entering the formula, Excel will calculate the standard deviation of the returns and display the result in the cell.

Make sure to round the answer to the nearest four decimals if needed, as specified in the question.

Explanation: