Question
A particular investment can have only two possible outcomes: it can succeed or fail. There is a 68% chance that the investment will succeed, and
A particular investment can have only two possible outcomes: it can succeed or fail. There is a 68% chance that the investment will succeed, and if this happens you forecast a return of 130%. Should the investment fail, you will experience a return of -25%.
What is the risk (as a standard deviation) of this asset? Answer in percentage without the symbol.
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Intermediate Financial Management
Authors: Eugene BrighamPhillip Daves
1st Edition
0324594712, 9780324594713
