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The Probabilities of Different Returns on a Stock Over the Year

Question 66

Multiple Choice

The probabilities of different returns on a stock over the year are:  Probability  Return 10%5%15%0%20%5%30%10%25%20%\begin{array} {cc } \text { Probability } & \text { Return } \\10 \% & - 5 \% \\15 \% & 0 \% \\20 \% & 5 \% \\30 \% & 10 \% \\25 \% & 20 \%\end{array}

The standard deviation of the return on the stock is about_____ percent.


A) 5
B) 8
C) 11
D) 14

Correct Answer:

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