Question
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 | 0.5 |
| Medium | 0.4 | 0.2 |
| Bad | ? | -0.4 |
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World Finance Since 1914
Authors: Paul Einzig
1st Edition
0415539471, 978-0415539470
