What is the approximate standard deviation of returns for a one-year project that is equally likely to return 100 percent as it is to provide a 100 percent loss?
A)0 percent
B)50 percent
C)71 percent
D)100 percent

Question

Quizplus · Accepted Answer

The standard deviation measures the dispersion of returns. With a 100% gain or 100% loss, the returns are highly dispersed, leading to a high standard deviation, approximately 100%.

What Is the Approximate Standard Deviation of Returns for a One-Year