Suppose that a firm has an expected return of 8.3% and a variance on the return of

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Suppose that a firm has an expected return of 8.3% and a variance on the return of 0.0176. Assume the risk-free rate is 2.1%. What is the standard deviation on the return?

a) 10.0%

b)13.3%

c)7.9%

d) 4.5%

Related Book For answer-question

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: May 11, 2024 07:05 AM

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Suppose that a firm has an expected return of 8.3% and a variance on the return of

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To calculate the standard deviation on the return we can use the formula S... View the full answer

Microeconomics An Intuitive Approach with Calculus

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