Calculate the Standard Deviation of the Following Investment: State of the Economy

question 52

Multiple Choice

Calculate the Standard Deviation of the following investment: State of the Economy Probability Outcome

The expected return for this investment is 5%

• A) 0.66%
• B) 5.77%
• C) 8.12%
• D) 10.41%

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Definitions:

Rank-Order

A method of arranging data or participants based on their score or position relative to one another.

Individualistic

Emphasizing the moral worth of the individual and favoring freedom of action for individuals over collective or state control.

Hofstede

A Dutch social psychologist who developed a model identifying five dimensions of culture that help to understand differences in societies: power distance, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance, and long-term versus short-term orientation.

Power Distance

Power distance refers to the extent to which less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.