Assume a financial analyst concludes the following probabilities and corresponding dividend payment estimates for company X: State of nature Dividend per share Probability Excellent $1.0 0.3 Good $0.8 0.2 Bad $0.2 0.5 Then the standard deviation of the dividend payment is Select one: OA. $0.3666 OB. $0.1344 OC. $0.5600 O D. $0.6218

Cornerstones of Financial Accounting
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Chapter10: Stockholder's Equity
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Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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Assume a financial analyst concludes the following probabilities and corresponding
dividend payment estimates for company X:
State of nature
Dividend per share Probability
Excellent
$1.0
0.3
Good
$0.8
0.2
Bad
$0.2
0.5
Then the standard deviation of the dividend payment is
Select one:
OA.
$0.3666
O B.
$0.1344
Oc.
$0.5600
O D.
$0.6218
Transcribed Image Text:Assume a financial analyst concludes the following probabilities and corresponding dividend payment estimates for company X: State of nature Dividend per share Probability Excellent $1.0 0.3 Good $0.8 0.2 Bad $0.2 0.5 Then the standard deviation of the dividend payment is Select one: OA. $0.3666 O B. $0.1344 Oc. $0.5600 O D. $0.6218
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