Purchase Solution

Standard Deviation

Not what you're looking for?

Ask Custom Question

The expected return for the asset shown in the following table is 18.75%. If the return distribution for the asset is described as below, what is the standard deviation for the asset's returns?

Return Probability
.10 .25
.20 .50
.25 .25

Purchase this Solution
Solution Summary

The solution does a great job of answering the question. The solution is brief and concise and very easy to follow along. All the steps are clearly shown. It can be easily understood by anyone with a basic understanding of Statistics or Accounting. Overall, an excellent solution.

Purchase this Solution
Free BrainMass Quizzes
Lean your Process

This quiz will help you understand the basic concepts of Lean.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

View More Free Quizzes
Related BrainMass Solutions

  • Six Sigma and Process Development/Measurement

    Mean = 55 Standard Deviation = Variance^0.5=4^0.5=2.0 USL = 55+4=59 LSL=55-4=51 Cp = Tolerance / (6*standard deviation) = (USL-LSL)/standard deviation Cp=(59-51)/(6*2)=0.667 Cpk = Minimum of (USL-mean)/(standard deviation*3) and (mean-LSL)/(standard

  • Standard Deviation and Risk

    478336 Standard Deviation and Risk What is the importance of the standard deviation in interpreting and drawing conclusions about risk?

  • Stock Variance

    497500 Stock Variance Standard Deviation The standard deviation of the market index portfolio is 20%. Stock A has a beta 1.5 and residual standard deviation of 30%.

  • Finding the Standard Deviation of a Portfolio Using Beta

    deviation of security or portfolio / Standard deviation of the market .60 = standard deviation of security or portfolio / .15 .09 = standard deviation of security or portfolio Thus, the standard deviation of the first portfolio is 9 percent.

  • Statistics Multiple Choice

    1. population standard deviation = 5 2. population standard deviation = 10 3. cannot determine from the information given 4. population standard deviation= 1.

  • Stock valuation/standard deviation/beta

    Beta is calculated as Beta of security = [Correlation X Standard Deviation of Security)] / Standard Deviation of market We are given correlation = 0.6, Standard deviation of security = 15% and Standard Deviation of market (S&P 500) = 18% beta of

  • Standard deviation of return for a portfolio

    259501 Standard Deviation of Return for a Portfolio Stock X has a standard deviation of return of 10%. Stock Y has a standard deviation of return of 15%. The correlation coefficient between stocks is 0.5.

  • Standard Deviation in a Gambling Scenario

    It is also likely that the one with larger standard deviation plays fewer times than the one with smaller standard deviation. Normally, a risk averse person would select a smaller standard deviation.

  • Standard deviation of returns

    183966 Standard deviation of returns on the fund and the standard deviation of market returns Suppose that a mutual fund has a beta equal to 0.75.

  • What weakness of the standard deviation is overcome through the use of the coefficient of variation?

    When using standard deviation, we know that the units of the standard deviation are the same as the population. In the original data, if we use X units then the standard deviation applies to those X units.

View More Related Solutions