What Is the Standard Deviation of the Returns on a Stock

question 95

Multiple Choice

What is the standard deviation of the returns on a stock given the following information? $$\begin{array} { l c c } { \text { State of } } & \text { Probability of } & \text { Rate of Return } \\\text { Econony } & \text { State of Economy } & \text { if State Occurs } \\\text { Boom } & .28 & .175 \\\text { Normal } & .67 & .128 \\\text { Recession } & .05 & .026\end{array}$$

Recognize ethical considerations in international business and their variance across countries.

Identify the types and characteristics of legal systems globally.

Understand the legal processes related to the enforcement of U.S. court judgments internationally.

Grasp the procedure and significance of international agreements and treaties in the U.S. legal context.

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Definitions:

Invoice Price

The price that appears on the invoice from the manufacturer to the dealer, often not reflecting the actual price a consumer pays.

Coupon Bond

A bond that pays the holder a fixed interest rate (coupon payment) over the bond's lifetime, in addition to returning the principal at maturity.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, considering all payments and the face value.

Intrinsic Value

The true, inherent, and underlying value of an asset, independent of its market price.