QUESTION 2 What is the expected standard deviation of stock A's returns based on the...

60.1K

Verified Solution

Question

Finance

image

QUESTION 2 What is the expected standard deviation of stock A's returns based on the information presented in the table? Outcome Probability of outcome Stock A return in outcome Good 10.096 80.096 | Medium 10.096 40.096 Bad -10.096 a. 29.39% (plus or minus 0.10 percentage points) b. 24.58% (plus or minus 0.10 percentage points) C 45.09% (plus or minus 0.10 percentage points) d. 36.82% (plus or minus 0.10 percentage points) The expected standard deviation can not be estimated because the probability of the bad outcome is not given or the standard deviation can be computed from the given information, but none of the above is within 0.10 percentage points of the correct

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students