Bear Stearns' stock price closed at $97, $102, $56, $26, $3 over five successive weeks. The weekly standard deviation of the stock price calculated from this sample is .

Standard deviation= $43.309

Explanation:

Standard deviation can be defined as a measure of dispersion of a set of values from their mean. When standard deviation is low it means the variables are close to their mean. While if standard deviation is high the variables are far away from the mean.

The mean= (sum of the values)/number of values

Mean= (97+102+56+26+3)/5

Mean= $56.80

Standard deviation= √(Σ(x- mean)^2/number-1

Standard deviation= √{(97-56.8)^2+ (102-56.8)^2+ (56-56.8)^2+ (26-56.8)^2+ (3-56.8)^2}/5

Standard deviation= √(1616.04+2043.04+0.64+948.64+2894.44)/5-1

Standard deviation= √7502.8/4

Standard deviation= $43.309

Answer is 43.309.

Explanation:

First we have to find the mean to evaluate standard deviation. Hence,

$97, $102, $56, $26, $3/5

=56.8

Now find standard deviation using the attached formula,

Squareroot,Summation(97-56.8)^2+(102-56.8)^2+(56-56.8)^2+(26-56.8)^2+(3-56.8)^2/4

Squareroot1616.04+2043.04+0.64+948.64+2894.44/4

Squareroot1875.7

=43.309.

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