Answer:
13%
Explanation:
The appropriate formula to use is as shown below:
Standard Deviation = [tex]\sqrt{\frac{∑f(x-y^{2} )}{∑f}}[/tex]
Where ∑ is the summation symbol,
f is the frequency (in this sample, the probability expressed in decimal),
x is the expected return,
y is the mean return.
The formula for y, the mean return, is as follows:
y = [tex]\frac{∑fx}{∑f}}[/tex].
All computations are attached.
From the computation,
the mean return = 8.876%
the standard deviation of returns = 12.7377% = 13%
