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An alternative investment analyst estimates the following return distributions for a stock, given the economic forecasts: Probability Rate of Return 0.2 4% 0.6 10% 0.2

An alternative investment analyst estimates the following return distributions for a stock, given the economic forecasts:

Probability Rate of Return

0.2 4%

0.6 10%

0.2 18%

The standard deviation of the expected return is closest to:

A). 4.1%

B). 5.4%

C). 6.3%

D). 4.8%

E). None of above

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