What is the expected return and standard deviation for the following stock?
A)15.49 percent; 14.28 percent
B)15.49 percent; 14.67 percent
C)18.80 percent; 14.95 percent
D)18.80 percent; 15.74 percent
E)18.80 percent'; 16.01 percent

Question

What is the expected return and standard deviation for the following stock? 
A)15.49 percent; 14.28 percent 
B)15.49 percent; 14.67 percent 
C)18.80 percent; 14.95 percent 
D)18.80 percent; 15.74 percent 
E)18.80 percent'; 16.01 percent

Quizplus · Accepted Answer

E(R) = 0.10(-0.19) + 0.60(0.17) + 0.30(0.35) = 18.80 percentσ² = 0.10(-0.19 - 0.188)² + 0.60(0.17 - 0.188)² + 0.30(0.35 - 0.188)² = 0.022356σ = √0.022356 = 14.95 percent

What Is the Expected Return and Standard Deviation for the Following