Given the following information,what is the standard deviation of the returns on this stock?
A)7.38 percent
B)7.55 percent
C)7.80 percent
D)7.91 percent
E)8.06 percent

Question

Given the following information,what is the standard deviation of the returns on this stock? 
A)7.38 percent 
B)7.55 percent 
C)7.80 percent 
D)7.91 percent 
E)8.06 percent

Quizplus · Accepted Answer

Expected return = (0.20 × 0.21) + (0.70 × 0.13) + (0.10 × -0.09) = 0.124Variance = 0.20(0.21 - 0.124)² + 0.70(0.13 - 0.124)² + 0.10(-0.09 - 0.124)² = 0.006084Standard deviation = √0.006084 = 7.80 percent

Given the Following Information,what Is the Standard Deviation of the Returns