Year Ra Ra - Rbar (Ra - Rbar)^2

2001 9 1 1
2002 6 -2 4
2003 7 -1 1
2004 10 2 4
2005 8 0 0
Total 40 10

R Bar = Sum R / N = 40 / 5 = 8

Var of A = 10 / 4 = 2.5 S.D. of A = SQRT of 2.5 = 1.5

Year Rb Ra - Rbar (Ra - Rbar)^2

2001 8 0.6 0.36
2002 7 -0.4 0.16
2003 9 1.6 2.56
2004 8 0.6 0.36
2005 5 -2.4 5.76
37 9.2

7.4

Var of B = 9.2 / 4 = 2.3

Probability Return (%)

Anuradh
(%) Bharati Ltd.
a Ltd.
10 –5 –2
20 15 10
40 27 30
20 13 15
10 8 5

rXp
10 -5 -0.5 -21.7 470.89
20 15 3 -1.7 2.89
40 27 10.8 10.3 106.09
20 13 2.6 -3.7 13.69
10 8 0.8 -8.7 75.69
ER 16.7

ER = 16.7
Var = 100.41
S.D = 10.02

10 -2 -0.2 -19.3 372.49

20 10 2 -7.3 53.29
40 30 12 12.7 161.29
20 15 3 -2.3 5.29
10 5 0.5 -12.3 151.29
ER 17.3

ER = 17.3
Var = 128.61
S.D = 11.34
 0.6
0.8
-1.6
1.2
0
1.00

S.D. of A = SQRT of 2.5 = 1.58

S.D. of B = 1.51
 47.09 41.881
0.58 2.482
42.44 52.324
2.74 1.702
7.57 10.701
100.41 109.09

37.25
10.66
64.52
1.06
15.13
128.61