Question
your investment has a 30% chance of losing 8%, a 40% chance of earning a 12% rate of return, and a 30% chance of earning
your investment has a 30% chance of losing 8%, a 40% chance of earning a 12% rate of return, and a 30% chance of earning a 15% return. What is your standard deviation of returns?
A 12.5%
B 10.85%
C 7.14%
D 9.7%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter
8th Canadian Edition
007133887X, 978-0071338875
