Standard Deviation question

bigbooma

New member
Joined
Nov 18, 2013
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2
Hi guys,

If I tell you that an investment returns 16%, 5% of the time, are you able to calculate the standard deviation with this information, or is more required?

Thanks!
 
Hi guys,

If I tell you that an investment returns 16%, 5% of the time, are you able to calculate the standard deviation with this information, or is more required?

Thanks!
You have to specify how close it is to 16% for that 5% of the time. Do you mean there is a 5% chance the return will be between 15.5% and 16.5%?? Do you believe the distribution to be symmetric around 16%?? Looks like a normal distribution?? If you made those assumptions, you could get an estimate of the standard deviation.
 
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