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

[kital]

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.

Thank you in advance.

 

[oldbrewer]

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]

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?

 

[oldbrewer]

yes