What is the standard deviation of the returns on this stock?
A)3.33 percent
B)4.62 percent
C)5.01 percent
D)5.77 percent
E)6.06 percent

Name: What is the standard deviation of the returns on this stock? A)3.33 percent B)4.62 percent C)5.01 percent D)5.77 percent E)6.06 percent
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Question

What is the standard deviation of the returns on this stock? 
A)3.33 percent 
B)4.62 percent 
C)5.01 percent 
D)5.77 percent 
E)6.06 percent

Quizplus · Accepted Answer

E(R) = (.27 × 6) + (.73 × 19) = 15.49Var = .27(6 - 15.49)² + .73(19 - 15.49)² = 33.31Std Dev = √33.31 = 5.77 percent

What Is the Standard Deviation of the Returns on This