Question
In: Finance
probability ABC Returns XYZ Returns 30% 15.00% 30.00% 35% -5.00% 30.00% 25% 30.00% 15.00% 10% 5.00%...
probability ABC Returns XYZ Returns
30%
15.00% 30.00%
35%
-5.00% 30.00%
25%
30.00% 15.00%
10%
5.00% 10.00%
what
is the standard deviation for stock abc and xyz
SD ABC
SD XYZ
Select
one:
a.
.0062 .55
b.
.018818 .00632
c. 15%
13.5%
d.
13.72% 7.95%
Solutions
Expert Solution
The correct answer is option d
-------------------------------------------------------------------------------------------------------------------
The expected returns on stock ABC is found as follows
Expected return = 0.30 
0.15 + 0.35
-0.05 + 0.25
0.30 + 0.10
0.05 = 10.75%
Variance of stock ABC = 0.30
( 0.15 - 0.1075)2 + 0.35
( -0.05 - 0.1075 )2 + 0.25
( 0.30 - 0.1075)2 + 0.10
( 0.05 - 0.1075)2
Variance of stock ABC = 0.01881875
Standard deviation = 
Standard deviation for stock ABC = 13.72%
Expected return of stock XYZ = 0.30
0.30 + 0.35
0.30 + 0.25
0.15 + 0.10
0.10 = 24.25%
Variance of stock XYZ = 0.30
( 0.30 - 0.2425)2 + 0.35
( 0.30 - 0.2425)2 + 0.25
( 0.15 - 0.2425)2 + 0.10
( 0.10 - 0.2425)2
Variance of stock XYZ = 0.00631875
Standard deviation = 
Standard deviation for stock XYZ = 7.95%
jeff jeffy answered 2 years agoRelated Solutions
probability ABC Returns XYZ Returns 30% 15.00% 30.00% 35% -5.00% 30.00% 25% 30.00% 15.00% 10% 5.00%...
probability ABC Returns XYZ Returns
30% 15.00% 30.00%
35% -5.00% 30.00%
25% 30.00% 15.00%
10% 5.00% 10.00%
what is the standard deviation for stock abc and xyz
SD ABC SD XYZ
Select one:
a. .0062 .55
b. .018818 .00632
c. 15% 13.5%
d. 13.72% 7.95%
Please Solve As soon as
Solve quickly I get you thumbs up directly
Thank's
Abdul-Rahim Taysir
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