Possible returns and their probabilities for an asset is given in the table below. The expected return is 30.25%. Calculate the standard deviation of the asset's return. Probability 0.40 0.45 0.15 O 13.92 % O 17.84% O 18.55% 19.09% O 16.59% Return 0.52 0.17 0.12

Possible returns and their probabilities for an asset is given in the table below. The expected return is 30.25%. Calculate the standard deviation of the asset's return. Probability 0.40 0.45 0.15 O 13.92 % O 17.84% O 18.55% 19.09% O 16.59% Return 0.52 0.17 0.12

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Possible returns and their probabilities for an asset is given in the table below. The expected return is 30.25%. Calculate the
standard deviation of the asset's return.
Probability
0.40
0.45
0.15
13.92%
O 17.84 %
18.55%
O 19.09%
16.59%
Return
0.52
0.17
0.12

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