Consider the Following Probability Distribution for Stocks a and B

question 12

Multiple Choice

Consider the following probability distribution for stocks A and B: $$\begin{array} { c c c c } \text { State } & \text { Probability } & \text { Return on Stock A } & \text { Return on Stock B } \\1 & 0.10 & 10 \% & 8 \% \\2 & 0.20 & 13 \% & 7 \% \\3 & 0.20 & 12 \% & 6 \% \\4 & 0.30 & 14 \% & 9 \% \\5&0.20 & 15 \% & 8 \%\end{array}$$
The standard deviations of stocks A and B are _____ and ____,respectively.

• A) 1.5%;1.9%
• B) 2.5%;1.1%
• C) 3.2%;2.0%
• D) 1.5%;1.1%
• E) none of these

---

Definitions:

Skill Development

The process of learning and refining abilities and techniques in a specific area to improve competence and performance.

Muscular Coordination

The ability to use different parts of the body together smoothly and efficiently.

Creeping

A form of locomotion where an infant starts moving on their hands and knees before they are able to walk, typically occurring around 6 to 10 months of age.

Grasping Objects

The act of taking hold of and holding an object using the hands or fingers, a skill that develops early in human life.