What is the standard deviation of the returns on a stock given the following information?
A)5.80%
B)7.34%
C)8.38%
D)9.15%
E)9.87%

Question

What is the standard deviation of the returns on a stock given the following information? 
A)5.80% 
B)7.34% 
C)8.38% 
D)9.15% 
E)9.87%

Quizplus · Accepted Answer

E(r)= (.10 F1F1F1S1F1F1F10 .16)+ (.60 F1F1F1S1F1F1F10 .11)+ (.30 F1F1F1S1F1F1F10 -.08)= .016 + .066 - .024 = .058Var = .10 F1F1F1S1F1F1F10 (.16 - .058)² + .60 F1F1F1S1F1F1F10 (.11 - .058)² + .30 F1F1F1S1F1F1F10 (-.08 - .058)² = .0010404 + .0016224 + .0057132 = .008376Std dev = F1F1F1S1F1F1F10.008376 = .09152 = 9.15%

What Is the Standard Deviation of the Returns on a Stock