What Is the Standard Deviation of the Returns on a Stock

question 73

Multiple Choice

What is the standard deviation of the returns on a stock given the following information?

• A)1.57 percent
• B)2.03 percent
• C)2.89 percent
• D)3.42 percent
• E)4.01 percent

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Definitions:

Financial Accounting

The field of accounting that focuses on reporting a company's financial information to external users, such as investors and creditors.

Probability

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

Mutually Exclusive

A statistical term describing events that cannot occur at the same time, implying no overlap in their outcomes.

Event A

A specified occurrence or result in a probabilistic framework that is subject to study or analysis.