What Is the Standard Deviation of an Investment That Has

question 52

Multiple Choice

What is the standard deviation of an investment that has the following expected scenario? 18% probability of a recession, 2.0% return; 65% probability of a moderate economy, 9.5% return; 17% probability of a strong economy, 14.2% return.

• A) 3.68%
• B) 1.23%
• C) 8.47%
• D) 6.66%

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Definitions:

Specialty Merchandise

Products that are distinguished by their unique characteristics, typically catering to specific interests or niche markets.

Wholesaler

An intermediary entity in the distribution channel that buys goods in large quantities from producers and sells them in smaller quantities to retailers or other businesses.

Performs

Refers to the actions or tasks completed by an individual, device, or system, typically measured against a standard or expectation.

Full-Line Wholesalers

Wholesalers who offer a wide range of products from many different manufacturers, providing retailers with varied merchandise under one roof.