Bianco Corporation Has Experienced Returns of -5%, 20%, 10% and -8

question 5

Multiple Choice

Bianco Corporation has experienced returns of -5%, 20%, 10% and -8% returns over the past four years. Given this information, calculate the company's standard deviation.

• A) 13.12%
• B) 10.08%
• C) 8.02%
• D) 6.09%
• E) 5.89%

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Definitions:

Equilibrium Price

The cost at which the amount of a good consumers want to buy matches the amount producers are willing to sell, achieving a state of equilibrium in the market.

Allocative Efficiency

A state of the economy in which production is in line with consumer preferences; every good or service is produced up to the point where the last unit provides a benefit to consumers equal to the cost of producing it.

Production Methods

Various techniques and processes used to create goods and services.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; specifically, every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it.