You have been given this probability distribution for the holding-period return for GM stock: What is the expected standard deviation for GM stock
A)16.91%
B)16.13%
C)13.79%
D)15.25%
E)14.87%

Name: You have been given this probability distribution for the holding-period return for GM stock: What is the expected standard deviation for GM stock A)16.91% B)16.13% C)13.79% D)15.25% E)14.87%
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Question

You have been given this probability distribution for the holding-period return for GM stock:  What is the expected standard deviation for GM stock
A)16.91% 
B)16.13% 
C)13.79% 
D)15.25% 
E)14.87%

Quizplus · Accepted Answer

s = [.40 (30 - 14.4)² + .40 (11 - 14.4)² + .20 (-10 - 14.4)²]^1/2 = 14.87%.

You Have Been Given This Probability Distribution for the Holding-Period