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Standard deviation of the rate of return on stock k


Problem:

Consider the following rates of return on stock K and the probability of each rate of return being realized:

  • Return% 5 12 -3
  • Probability 0.25 0.50 0.25
  • Calculate the average rate of return on stock K.

Required:

Question: What is the standard deviation of the rate of return on stock K?

Note: Please show guided help with steps and answer.

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Accounting Basics: Standard deviation of the rate of return on stock k
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