QUESTION 2 What is the expected standard deviation of stock A's returns based on the...
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QUESTION 2 What is the expected standard deviation of stock A's returns based on the information presented in the table? Outcome Probability of outcome Stock A return in outcome Good 10.096 80.096 | Medium 10.096 40.096 Bad -10.096 a. 29.39% (plus or minus 0.10 percentage points) b. 24.58% (plus or minus 0.10 percentage points) C 45.09% (plus or minus 0.10 percentage points) d. 36.82% (plus or minus 0.10 percentage points) The expected standard deviation can not be estimated because the probability of the bad outcome is not given or the standard deviation can be computed from the given information, but none of the above is within 0.10 percentage points of the correct
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