how to calculate mean and standard deviation
Finding mean and standard deviation
July 9, 2019Equation
July 9, 2019Given the holding-period returns shown here, compute the average returns and the standard deviationfor Supply Chain Inc. and Wholesale Importers, Inc.
Month Supply Chain Inc. Wholesale Importers
1 6% 4%
2 3 2
3 -1 1
4 -3 -2
5 5 2
6 0 2
In Excel,
STDEV uses the following formula:
In words, we are squaring the deviations of the x’s from …
The following provides all formulas and demonstrates how mean and standard deviation are calculated from a set of data. Results are also calculated in Excel.
