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

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

Mean = .5 × 100% + .5 × -100% = 0%Variance = .5 × (100 - 0)² + .5 × (-100 - 0)² = 10,000Std dev = 10,000^.5 = 100%

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