Andre is considering an investment in Pollard's Inc. and has gathered the following information. What is the expected standard deviation for a share of the firm's stock?
A) 17.48%
B) 122.63%
C) 20.13%
D) 5.14%

Question

Andre is considering an investment in Pollard's Inc. and has gathered the following information. What is the expected standard deviation for a share of the firm's stock? 
A) 17.48% 
B) 122.63% 
C) 20.13% 
D) 5.14%

Quizplus · Accepted Answer

The expected standard deviation for the share of the firm's stock can be found using the formula σ = √(Σ[(Ri - Ravg)^2 x Pi]), where Ri is the return for each scenario, Ravg is the average return, and Pi is the probability of each scenario. Using the given data, we can calculate the expected standard deviation to be 20.13%. Therefore, the best choice is C.

Andre Is Considering an Investment in Pollard's Inc