Ciorstaidh's investment has a 20% chance of producing a 14% return, a 50% chance of producing a 9% return, and a 30% chance of producing a -2% return. What is its standard deviation? a. 4.46% b. 5.81% c. 6.00% d. 0.36%
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Expected return = (0.20 * 14%) + (0.50 * 9%) + (0.30 * -2%) Expected return = 2.8% + 4.5% - 0.6% Expected return = 6.7% Show more…
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