Question
Consider a stock that may produce the various possible returns for the next year: Probability Stock Return Scenario 1 0.2 20% Scenario 2 0.15 19%
Consider a stock that may produce the various possible returns for the next year:
Probability | Stock Return | |
Scenario 1 | 0.2 | 20% |
Scenario 2 | 0.15 | 19% |
Scenario 3 | 0.5 | -5% |
Scenario 4 | 0.15 | 23% |
Calculate the standard deviation (σ) of the return on the stock.
Round your answer to the nearest 0.1% and enter your answer as a percentage. For example, if your answer is 12.3%, enter 12.3
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