What is the standard deviation of a security which has the following expected returns?
A)7.48 percent
B)7.61 percent
C)7.67 percent
D)7.82 percent
E)7.91 percent

Name: What is the standard deviation of a security which has the following expected returns? A)7.48 percent B)7.61 percent C)7.67 percent D)7.82 percent E)7.91 percent
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Question

What is the standard deviation of a security which has the following expected returns? 
A)7.48 percent 
B)7.61 percent 
C)7.67 percent 
D)7.82 percent 
E)7.91 percent

Quizplus · Accepted Answer

E(R) = (.10 × 19) + (.75 × 13) + (.15 × -7) = 10.6Var = .10(19 - 10.6)² + .75(13 - 10.6)² + .15(-7 - 10.6)² = 57.84Std Dev = √57.84 = 7.61 percent

What Is the Standard Deviation of a Security Which Has