Use the following information: Stock A B Good state 10%14% ...

70.2K

Verified Solution

Question

Accounting

Use the following information:
Stock A B
Good state 10%14%
Bad state 2%-2%
Assume there is 60% probability that the good state occurs and 40% chance the bad state occurs.
What is the standard deviation of stock A?(Please use 5 decimal places, this should be written in percentage, so an answer of 23.143% should be written as .23143)

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