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Author Question: If an asset has a 35% probability of earning a 20% return and a 65% probability of earning a 5% ... (Read 68 times)

mrsjacobs44

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on: Apr 25, 2021

Question 1

Consider the following bet: heads I pay you a dollar, tails you pay me a dollar. What is the standard deviations of the payoffs (returns) of this bet? (Assume a fair coin.)
◦ -$1.00
◦ $0
◦ $0.50
◦ $1.00
◦ $10.00

Question 2

If an asset has a 35% probability of earning a 20% return and a 65% probability of earning a 5% return, what is its standard deviation?
◦ 1.2%
◦ 18.0%
◦ 7.2%
◦ 11.0%
◦ 12.2%
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Marked as best answer by mrsjacobs44 on Apr 25, 2021

jamesnevil303

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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mrsjacobs44

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

LVPMS

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Reply 3 on: Yesterday
:D TYSM

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