Find out standard deviation of investment


Problem:

Your investment has a 40% chance of earning a 15% rate of return, a 50% chance of earning a 10% rate of return, and a 10% chance of losing 3%.

Required:

Question 1: What is the standard deviation of this investment?

  • 5.14%
  • 7.59%
  • 9.29%
  • 8.43%

Note: Please show the work not just the answer.

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Finance Basics: Find out standard deviation of investment
Reference No:- TGS0880113

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