31) You have been given this probability distribution for the holding-period return for Cheese, Inc. stock: State 1 2 3 Probability Price 25 40 35 % % % $ $ $ SA 50 60 70
31) You have been given this probability distribution for the holding-period return for Cheese, Inc. stock: State 1 2 3 Probability Price 25 40 35 % % % $ $ $ SA 50 60 70
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Transcribed Image Text:31) You have been given this probability distribution for the holding-period return for Cheese,
Inc. stock:
State
Probability
1
2
3
Price
25
40
35
A) 4.72%
B) 6.30%
C) 4.38%
D) 5.74%
E) None of the options are correct.
%
%
%
$
$
$
50
60
70
Assuming that the expected return on Cheese's stock is 14.35%, what is the standard deviation
of these returns?
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