Calculate the standard deviation of the return distribution


Problem: Mr. Boyles has made an investment that will generate returns that are subject to the state of the economy during the year. Use the following information to calculate the standard deviation of the return distribution for Mr. Boyles' investment. (Round to the Nearest Hundredth)

State Return Probability
Not So Good 10.00% 30.00%
OK 15.00% 40.00%
Awesome 50.00% 30.00%

Don purchased a stock for $37 and sold this stock a year later for $50. His total holding period return was 50%. What is the amount of dividends that Don received?

A. 0
B. 2.5
C. 5.5
D. 6.5

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Finance Basics: Calculate the standard deviation of the return distribution
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