You would like to analyze the amount of risk in Groupon stock. Here's what you know:

• Every year, the return can equal 5% or -7%.
• The 5% return has a 90% probability of occurrence, and the other return will occur with the remaining probability.

What is Groupon stock's Standard Deviation of annual returns?

Group of answer choices

2.40%

3.60%

4.77%

5.50%

6.68%

Previous