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# Basic concepts in Finance

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

#### Solution Preview

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 ...

#### Solution Summary

There are two problems. Solution to first problem describes the steps to calculate mean and standard deviation of returns. Solution to second problem depicts the steps to calculate the amount of dividend received.

\$2.19