Question
There are three states of the economy: Low, Medium, and High, with probabilities 25%(Low), 50% (Medium), and 25%(High). A bond fund has returns 8% in
There are three states of the economy: Low, Medium, and High, with probabilities 25%(Low), 50% (Medium), and 25%(High). A bond fund has returns 8% in Low, 5% in Medium, and 2% in High. What is the standard deviation of the bond fund's returns?
A. 4.5%
B. .00045%
C. 2.12%
D. 3.97%
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Innovation In Public Transport Finance
Authors: Shishir Mathur
1st Edition
1138250139, 978-1138250130
