What Is the Standard Deviation of a Security Which Has

question 47

Multiple Choice

What is the standard deviation of a security which has the following expected returns?

• A) 7.48 percent
• B) 7.61 percent
• C) 7.67 percent
• D) 7.82 percent
• E) 7.91 percent

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Definitions:

Par Value

Refers to the face value of a bond or the stated value of a stock, indicating the amount that will be paid out at maturity or represented in the corporation's documents.

Secured Bonds

Bonds that are backed by specific collateral that must be forfeited in the event that the issuing firm defaults.