Given the Following Information, Compute the Standard Deviation for Investment $\begin{array}{ll}\text { Investment A }\\\text { Payoff } & \text { Probability } \\\hline 20 \% & 0.5 \\10 \% & 0.4 \\-10 \% & 0.1\end{array}$

question 44

Multiple Choice

Given the following information, compute the standard deviation for Investment A: $\begin{array}{ll}\text { Investment A }\\\text { Payoff } & \text { Probability } \\\hline 20 \% & 0.5 \\10 \% & 0.4 \\-10 \% & 0.1\end{array}$ $\hat { r} _ { \mathcal { A } }$ = 13.0%

• A)85.0%
• B)5.0%
• C)9.0%
• D)17.%
• E)None of the above are correct.

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Definitions:

Direction

In finance, it refers to the trend or movement of market prices or interest rates.

Profit Margin

A financial metric that shows the percentage of revenue that exceeds the costs associated with making or buying the goods or services sold.

Net Income

What remains as a company's profit once revenue is adjusted for taxes and expenses.

Return On Assets

A financial metric that measures the profitability of a company relative to its total assets, indicating how efficiently a company uses its assets to generate earnings.