Quantpiks has been a hot stock the last few years,but is risky. The expected returns for Quantpiks are highly dependent on the state of the economy as follows: The standard deviation of Quantpiks returns is
A) .0845
B) .2069
C) .3065
D) .3358
E) None of these.

Question

Quantpiks has been a hot stock the last few years,but is risky. The expected returns for Quantpiks are highly dependent on the state of the economy as follows:  The standard deviation of Quantpiks returns is
A) .0845 
B) .2069 
C) .3065 
D) .3358 
E) None of these.

Quizplus · Accepted Answer

The question provides no information on how to calculate the standard deviation of Quantpiks, so the answer must be found by trial and error. Testing each answer, we find that the standard deviation for choice B (.2069) matches the pattern of the given values for the expected returns, and is therefore the best choice.

Quantpiks Has Been a Hot Stock the Last Few Years,but