Question
What is the expected standard deviation of stock A's returns based on the information presented in the table? Outcome Probability of outcome Stock A return
What is the expected standard deviation of stock A's returns based on the information presented in the table?
| Outcome | Probability of outcome | Stock A return in outcome |
|---|---|---|
| Good | 19% | 75.00% |
| Medium | 56% | 9.00% |
| Bad | "?" | -40.00% |
| 36.17% (plus or minus 0.02 percentage points) | ||
| 30.58% (plus or minus 0.02 percentage points) | ||
| 37.79% (plus or minus 0.02 percentage points) | ||
| 32.33% (plus or minus 0.02 percentage points) |
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Finance With Monte Carlo
Authors: Ronald W. Shonkwiler
2013th Edition
146148510X, 978-1461485100
