Question
13.What is the expected standard deviation of stock As returns based on the information presented in the table? Answer as a rate in decimal format
13.What is the expected standard deviation of stock As returns based on the information presented in the table? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. Note that figures in the table are presented in decimal format, not as percentages.
| Outcome | Probability of outcome | Stock A return in outcome |
| Good | 0.2 | 0.7 |
| Medium | 0.4 | 0.1 |
| Bad | ? | -0.1 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Modeling An Introductory Guide To Excel And VBA Applications In Finance
Authors: Joachim Häcker, Dietmar Ernst
1st Edition
1137426578, 978-1137426574
