You Have Been Given This Probability Distribution for the Holding-Period

question 27

Multiple Choice

You have been given this probability distribution for the holding-period return for Cheese, Inc.stock: Assuming that the expected return on Cheese's stock is 14.35%, what is the standard deviation of these returns

• A)4.72%
• B)6.30%
• C)4.38%
• D)5.74%
• E)None of the options

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Definitions:

Cash Decrease

A reduction in the amount of cash a company has on hand, which can result from expenses, purchases, or withdrawals.

Income Statement

The income statement is a financial statement that reports a company's financial performance over a specific accounting period, showing revenue, expenses, and net income or loss.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and stockholders' equity at a specific point in time.

Income Statement

A financial statement that summarizes revenues, expenses, and profits or losses of a company over a specific period, showing how revenue is transformed into net income.