What Is the Standard Deviation of the Returns on a Stock

question 53

Multiple Choice

What is the standard deviation of the returns on a stock given the following information?

• A)5.80%
• B)7.34%
• C)8.38%
• D)9.15%
• E)9.87%

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Definitions:

Two Groups

Refers specifically to an experimental design wherein participants are divided into two distinct groups, often an experimental group and a control group.

Separate Control Group

A group in an experiment that is not exposed to the treatment or intervention and is used as a benchmark to measure the effects of such treatment.

Regression Toward the Mean

The statistical phenomenon that high or low scores naturally tend to move closer to the average over time.

Extreme Scores

Values in a data set that are significantly higher or lower than the majority of the other scores, potentially skewing results.