Share
Explore BrainMass

Calculating the standard deviation in the given case

Given the following information, what is the standard deviation for this stock?

Probabilities:
Recession:0.3
Normal:0.45
Boom:0.25

Returns:
Recession:12%
Normal:8%
Boom:-16%

1. 11.21 percent
2. 9.85 percent
3. 12.87 percent
4. 10.75 percent
5. 9.22 percent

Solution Preview

Please refer attached file for format and formulas.

Correct option is 1

Probability P Return ( R) P*R
Recession 0.30 12% 0.036
Normal 0.45 8% ...

Solution Summary

Solution describes the steps to calculate standard deviation in the given case.

$2.19