Expected Return and Risk Compute the Standard Deviation Given These

question 3

Multiple Choice

Expected Return and Risk Compute the standard deviation given these four economic states,their likelihoods,and the potential returns:

• A)12.19 percent
• B)23.8 percent
• C)38.65 percent
• D)88.06 percent

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Definitions:

Capital Needs

The financial requirements a company has for carrying out its operations and investments, including the purchasing of assets and funding of projects.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Paid-In Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.

Retained Earnings

The portion of net profits that are kept in the company rather than distributed to shareholders as dividends, often used for reinvestment in the business.