A share of an oil company can be worth $10 with a probability of 0.50 and $20 with a probability of 0.50. What is the standard deviation of the price of this share?

A) 3
B) 5
C) 6
D) 8.5


B

Economics

You might also like to view...

In 2012, the House of Representatives voted to have what type of audit of the Fed?

A) auditing of financial statements B) auditing lending policy that took place during the financial crisis of 2007-2009 C) auditing of monetary policy decisions D) auditing of personal finances of members of the Board of Governors

Economics

The demand curve for a monopolistic competitor slopes downward because

a. demand drops to zero after a slight price increase. b. there are close but not perfect substitutes for the product. c. customers have no loyalty to the product. d. the product is undifferentiated.

Economics

The command economy predominates in countries like North Korea and Cuba

a. True b. False Indicate whether the statement is true or false

Economics

Which of the following statements is incorrect?

A. A country cannot be open to international capital flows, control its domestic interest rate and fix its exchange rate. B. A country can be open to international capital flows and fix its exchange rate but could not also control its own domestic interest rate. C. A country can be open to international capital flows, control its domestic interest rate, and fix its exchange rate. D. A country can be open to international capital flows and control its own domestic interest rate but it can't fix its exchange rate.

Economics