What Is the Standard Deviation of Returns on a Stock

question 46

Multiple Choice

What is the standard deviation of returns on a stock priced today at $10 that has a 25 percent probability of increasing to $13,a 50 percent probability of increasing to $12,a 15 percent probability of increasing by 5 percent,and a 10 percent probability of decreasing to $ 7?

• A) 0.0094
• B) 0.0286
• C) 0.0968
• D) 0.1692

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