Question
Consider a stock that may produce the various possible returns for the next year: Probability Stock Return Scenario 1 0.2 7% Scenario 2 0.15 16%
Consider a stock that may produce the various possible returns for the next year:
|
| Probability | Stock Return |
| Scenario 1 | 0.2 | 7% |
| Scenario 2 | 0.15 | 16% |
| Scenario 3 | 0.5 | -15% |
| Scenario 4 | 0.15 | 20% |
Calculate the standard deviation () of the return on the stock.
Round your answer to the nearest 0.1% and enter your answer as a percentage.
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
12th Edition
0136096689, 978-0136096689
