Question
Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 1 0.10 10% 8% 2
Consider the following probability distribution for stocks A and B:
| State | Probability | Return on Stock A | Return on Stock B | ||||
| 1 | 0.10 | 10% | 8% | ||||
| 2 | 0.20 | 13% | 7% | ||||
| 3 | 0.20 | 12% | 6% | ||||
| 4 | 0.30 | 14% | 9% | ||||
| 5 | 0.20 | 15% | 8% |
calculate the standard deviations of stocks A and B are _____ and _____, respectively.
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Understanding Basic Statistics
Authors: Charles Henry Brase, Corrinne Pellillo Brase
6th Edition
978-1133525097, 1133525091, 1111827028, 978-1133110316, 1133110312, 978-1111827021
