Determine the expected standard deviation of a stock that an investment manager has determined that has three possible return outcomes over the next 12 months; -6.45%, 9.85% and 13.05%, for which she has assigned the following probabilities of occurring; 12.5%, 72.5% and 15.0% respectively.

Answer rating: 100% (QA)

To determine the expected standard deviation of a stock we need to calculate the weighted standard d... View the full answer