What is the expected standard deviation for GM stock?

You have been given this probability distribution for the holding-period return for GM stock:







A. 16.91%

B. 16.13%

C. 13.79%

D. 15.25%

E. 14.87%


E. 14.87%

s = [0.40 (30 – 14.4)2 + 0.40 (11 – 14.4)2 + 0.20 (–10 – 14.4)2]1/2 = 14.87%.

Business

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