: A measure of the dispersion of a set of data from its standard. The formula is the square root of variance. Consider the following scenario: you have a security that grew during a five-year period
,
giving you returns of:
5.0% during year 1,
3.5% during year 2,
8.5% during year 3,
6.0% during year 4,
and 4.0% during year 5.
First, you need to calculate the
average annual growth