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Author Question: A share of an oil company can be worth 10 with a probability of 0.50 and 20 with a probability of ... (Read 42 times)

jc611

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  • Posts: 552
on: Jul 1, 2018
A share of an oil company can be worth 10 with a probability of 0.50 and 20 with a probability of 0.50. What is the standard deviation of the price of this share?
 
  A) 3
  B) 5
  C) 6
  D) 8.5

Question 2

A share of a restaurant chain can be worth 2 with a probability of 0.40 and 10 with a probability of 0.60. What is the variance of the price of this share?
 
  A) 3
  B) 5
  C) 6
  D) 8.5
Microeconomics ¦ Perloff ¦ 8th Edition
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medine

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  • Posts: 344
Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

C


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