Probability

A Stock’S Return Has The Following Range Of Outcomes And Probabilities Outcomes Probability Of The

Question

A stock’s return has the following range of outcomes and probabilities:

Outcomes Probability of the

Outcome

.03 .20

.08 .40

.13 .40

Calculate the standard deviation (not the variance!) of the above return. Hint: Use the results from 13 above! Keep working in percentages instead of rates!

Financial Accounting

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