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    What Is the Standard Deviation of the Payoff from an Investment
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What Is the Standard Deviation of the Payoff from an Investment

Question 20

Question 20

Multiple Choice

What is the standard deviation of the payoff from an investment that yields $5,000 with a probability of 0.15 and $500 with a probability of 0.85?


A) $0
B) $2,581,875
C) $42.50
D) $1,606.82

Correct Answer:

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