Question: Can someone answer this question? Question 3a (Standard Deviation). Consider the following bet: heads I pay you a dollar, tails you pay me a dollar.

Can someone answer this question?

Can someone answer this question? Question 3a (Standard Deviation). Consider the following

Question 3a (Standard Deviation). Consider the following bet: heads I pay you a dollar, tails you pay me a dollar. What is the standard deviation of the payoffs (returns) of this bet? Assume a fair coin is used. Round your answer to the nearest whole number, e.g., 12 Question 3b (Standard Deviation). It costs $1,000 to enter the following game of chance, which is based on the outcome of a coin toss (fair coin). If the coin comes up heads, then you win and walk away with $1,100. If the coin comes up tails, then you lose and walk away with $900. What is the standard deviation of the returns? Hint: Compute the return in each case first. Round your answer to wo decimal places, e.g., 0.12

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