An Investor Has Purchased a Mining Stock

question 103

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:

Probability

A measure of the likelihood that a specific event will occur.

Incomplete Dominance

A genetic phenomenon where the phenotype of the heterozygote is intermediate between both homozygote parents.

Heterozygote

An individual possessing two different alleles of a particular gene, one inherited from each parent.

Intermediate Expression

It refers to the expression of a phenotype that is between two extremes, typically resulting from incomplete dominance in genetics.