YEARLY RETURN,

AVERAGE RETURN
AND STANDARD
DEVIATION
 Important keys
1.Yearly Return
2.Average Return
3.Risk- Standard Deviation
Go to the website of investing.com
1. https://www.investing.com/
2. Key in the selected companies’ information
3. Download the selected companies’ monthly share price from 2016 to 2020.
1. Yearly Return
 How to calculate yearly return?
For 2016
To get 2016’s return, you need to download the
monthly price of 2016. Yearly return for 2016:
(Monthly return)/12= xxx%

◦Repeat the same calculation for 2017 to 2020

2. Average return
 How to calculate average Return

Sum of yearly return/n

(2016+2017 + 2018 + 2019 + 2020)/5
Average return = xx %
3. Variance and Standard Deviation
Variance and Standard Deviation
𝑦𝑒𝑎𝑟𝑙𝑦 𝑟𝑒𝑡𝑢𝑟𝑛2016−𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑟𝑒𝑡𝑢𝑟𝑛2016 2
2+
𝑦𝑒𝑎𝑟𝑙𝑦 𝑟𝑒𝑡𝑢𝑟𝑛2017−𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑟𝑒𝑡𝑢𝑟𝑛2017 +
𝑦𝑒𝑎𝑟𝑙𝑦 𝑟𝑒𝑡𝑢𝑟𝑛2018−𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑟𝑒𝑡𝑢𝑟𝑛2018 2+
𝑦𝑒𝑎𝑟𝑙𝑦 𝑟𝑒𝑡𝑢𝑟𝑛2019−𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑟𝑒𝑡𝑢𝑟𝑛2019 2
𝑦𝑒𝑎𝑟𝑙𝑦 𝑟𝑒𝑡𝑢𝑟𝑛2020−𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑟𝑒𝑡𝑢𝑟𝑛2020 2
S 2= 5
−1
S = 𝑆2
= xx%