An Investor Has Purchased a Mining Stock

question 276

Multiple Choice

An investor has purchased a mining stock. It is expected that during a good economy, the stock will provide an 8% return, while in a poor economy the stock will provide a 20% return. The probability of a poor economy is expected to be 30%. Given this information, calculate the standard deviation for this stock.

• A) 9.1%
• B) 8.2%
• C) 7.3%
• D) 6.4%
• E) 5.5%

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Definitions:

Succession Management

A strategy for identifying and developing future leaders within an organization.

Senior Executive Turnover

This term refers to the rate at which top management personnel leave an organization and are replaced by others, which can impact the organizational stability and strategic direction.

HR Supply Planning

The process used by human resources to ensure that the organization has the right number of employees with the necessary skills in the right places at the right times.

Demographic Trends

Patterns in the composition of a population over time, including changes in age, gender, race, and other characteristics.