Use the Table for the Question(s)below

question 59

Multiple Choice

Use the table for the question(s) below.
Consider the following probability distribution of returns for Alpha Corporation:
-The standard deviation of the return on Alpha Corporation is closest to:

• A)22.4%.
• B)19.0%.
• C)21.8%.
• D)19.4%.

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Definitions:

Dividend Income

Income received from owning shares in a company, typically paid out of the company's profits.

Capital Gains

The profit made from the sale of an asset, such as stocks or property, which exceeds its original purchase price.

Target Payout Ratio

The percentage of net income that a firm aims to pay out to its shareholders as dividends.

Earnings

The amount of profit that a company produces during a specific period, indicative of its financial health and performance.