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What is the expected standard deviation of stock As returns based on the information presented in the table? Answer as a rate in decimal format
What is the expected standard deviation of stock As returns based on the information presented in the table? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. Note that figures in the table are presented in decimal format, not as percentages.
Outcome | Probability of outcome | Stock A return in outcome |
Good | 0.3 | 0.7 |
Medium | 0.5 | 0.1 |
Bad | ? | -0.1 |
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