Consider the Following Probability Distribution for Stocks C and D

question 40

Multiple Choice

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

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Definitions:

Adducts

The movement of a limb or other part toward the midline of the body or toward another part.

Swan-neck Deformity

A condition characterized by hyperextension of the proximal interphalangeal joint and flexion of the distal interphalangeal joint of the fingers, often associated with rheumatoid arthritis.

Ulnar Deviation

A hand condition where the fingers bend towards the ulna bone and the outer side of the forearm, often associated with rheumatoid arthritis.

Rheumatoid Arthritis

A chronic autoimmune condition causing inflammation, pain, and deformity in the joints.