Consider the Following Probability Distribution for Stocks C and D

question 77

Multiple Choice

Consider the following probability distribution for stocks C and D: $\begin{array}{cccc}\underline{\text { State }} &\underline{ \text { Probability }} &\underline{ \text { Return on Stock C} } &\underline{ \text { Return on Stock D} } \\1 & 0.30 & 7 \% & -9 \% \\2 & 0.50 & 11 \% & 14 \% \\3 & 0.20 & -16 \% & 26 \%\end{array}$

-The standard deviations of stocks C and D are _____ and _____,respectively.

• A)7.62%; 11.24%
• B)11.24%; 7.62%
• C)10.35%; 12.93%
• D)12.93%; 10.35%
• E)none of the above

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Definitions:

Cortisol

A steroid hormone produced by the adrenal glands, involved in the body's stress response as well as metabolism and immune response regulation.

Metabolic Rate

The rate at which the body burns calories or energy, influencing how quickly or slowly one gains or loses weight.

Thyroid Hormones

Chemical substances produced by the thyroid gland, primarily thyroxine (T4) and triiodothyronine (T3), which are crucial in regulating metabolism, energy generation, and overall growth and development.

Inhibin

Polypeptide secreted from the testes that inhibits FSH secretion.