# Average FX rate change (daily) over a 4y period, and standard deviation of the average FX rate change HELP!

#### kital

##### New Member
Hello. I have a table with daily FX rates (e.g. USD/AUD) over a 4y period and I have been asked to do the following:

Estimate the average FX rate change (daily) recorded in the last four-year period for each currency and the standard deviation of the average FX rate change.

I don't even know where to start, any ideas.

### Excel Facts

What did Pito Salas invent?
Pito Salas, working for Lotus, popularized what would become to be pivot tables. It was released as Lotus Improv in 1989.

#### oldbrewer

##### Well-known Member
say you have just 5 values

1.27
1.35
1.3
1.31
1.34

you need the absolute difference for each pair eg .08 .05 .01 .03 add them up and divide by 4

assuming these in A1:A5 =stdevs(A1:A5)

the average over 4 years will be pretty meaningless and the std dev over 4 years will be totally meaningless

#### kital

##### New Member
say you have just 5 values

1.27
1.35
1.3
1.31
1.34

you need the absolute difference for each pair eg .08 .05 .01 .03 add them up and divide by 4

assuming these in A1:A5 =stdevs(A1:A5)

the average over 4 years will be pretty meaningless and the std dev over 4 years will be totally meaningless

Just to confirm, I need to do the following:

To get the avg. fx change rate, I work out the difference between each daily rate, add them up and divide by the number of days of data (4 years = 1001 approx) and that is the average FX date change?

To get the standard deviation of the FX rate change, it's just a simple STDEV calculation in excel, using the daily data over the four year period?

yes

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