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What is the standard deviation of a portfolio's returns if the mean return is 15%, and the variance of returns is 184

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Answer:

Standard deviation =13.6

Step-by-step explanation:

Standard deviation is measure of the total risks of an investment. It measures the volatility in return of an investment as a result of both systematic and non-systematic risks.

Non-systematic risk includes risk that are unique to a company like poor management, legal suit against the company .

Standard deviation is the sum of the squared deviation of the individual return from the mean return under different scenarios .

Further more, it can be calculated as the square root of the variance of the portfolio.

Standard deviation = √ variance

DATA

Variance = 184

Standard deviation = √184 = 13.6

Standard deviation =13.6

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