Question

(Standard deviation) Given the following probabilities and returns for Mik’s Corperation, find the standard devistion.

Probability. Returns.

0.10 9%

0.40 3%

0.40 19%

0.10 13%

Mik’s standard devistion is ___% (Round to two decimal places)

Answer 1

Ans 7.21

	Probability (P)	RETURN (X)	(P * X )	P * (X -Average Return of X)^2
	10%	9	0.9	0.4000
	40%	3	1.2	25.6000
	40%	19	7.6	25.6000
	10%	13	1.3	0.4000
		TOTAL	11.00	52.0000
Expected Return =		(P * X)
		11.00%
VARIANCE =		P * (X -Average Return of X)^2
		52.0000
Standard Deviation =		Square root of (P * (X -Average Return of X)^2)
		Square root of 52
		7.21