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A Stock's Price Is $20 at the Beginning of a Year

Question 85

Multiple Choice

A stock's price is $20 at the beginning of a year. There is a 25 percent chance that the price will be $17 at the end of the year, and a 75 percent chance that the price will be $25 at the end of the year. The stock will pay a dividend of $3 during the year. The standard deviation of the return on the stock is ______percent (rounded to the nearest percentage point) .


A) 10
B) 12
C) 15
D) 17

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