An oil exploration firm is currently searching for oil. Their probability of finding oil this...
70.2K
Verified Solution
Link Copied!
Question
Finance
An oil exploration firm is currently searching for oil. Their probability of finding oil this year is 74% and if they hit oil we expect the stock to return 71%. If they do not hit oil we expect the stock to return -19%. What is the standard deviation of the return of the stock? Give your answer to two decimal places (9.99%)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
