The population standard deviation equals the square root of the sum of the squares of the position returns less the mean return, divided by the number of entities in the population.
|
Position |
Return (%) |
(Return – Mean)2 |
|
A |
1.3 |
0.49 |
|
B |
1.4 |
0.36 |
|
C |
2.2 |
0.04 |
|
D |
3.4 |
1.96 |
|
E |
1.7 |
0.09 |
|
Mean |
10.0/5 = 2.0 |
Sum = 2.94 |
|
Std. Dev. = (2.94/5)0.5 = 0.77% |
