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Blue Mountain stock has the following probability distribution of expected returns. What is Blue Mountains stock expected rate of return and standard deviation? Probability Rate
Blue Mountain stock has the following probability distribution of expected returns. What is Blue Mountains stock expected rate of return and standard deviation?
Probability | Rate of Return |
0.1 | -15% |
0.2 | 0% |
0.4 | 5% |
0.2 | 10% |
0.1 | 25% |
- A. Rate of Return = 7% SD = 11.3268%
- B. Rate of Return = 5% SD = 9.4868%
- C. Rate of Return = 5% SD = 7.4811%
- D. Rate of Return = 7% SD = 18.7668%
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