Question
You pay $1,000 to flip a two-sided, fair coin at the local fair. If you flip 'heads', you walk away with $3,000, a return of
You pay $1,000 to flip a two-sided, fair coin at the local fair. If you flip 'heads', you walk away with $3,000, a return of 200%. However, if you flip 'tails', you walk away with $250, a return of -75%. What is the standard deviation of the returns?
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
9781118774113, 1118774116, 111803791X, 978-1118037911
