Question
Karen is considering investing in a company's stock and is aware that the return on that investment is particularly sensitive to how the economy is
Karen is considering investing in a company's stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment.
| Probability | Return | ||||
|---|---|---|---|---|---|
| Boom | 0.2 | 25.00% | |||
| Good | 0.2 | 15.00% | |||
| Level | 0.1 | 10.00% | |||
| Slump | 0.5 | -5.00% | |||
Use the table of returns and probabilities above to determine the standard deviation of the return on Karen's investment?
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The Essential Credit Repair Handbook
Authors: Deborah McNaughton
1st Edition
160163160X, 978-1601631602
