Consider the following probability distribution for stocks A and B: Table 4 Probability Distribution for Stocks A and B State Probability Return on Stock A Return on Stock B 1 0.1 10% 8% 2 0.2 13% 7% 3 0.2 12% 6% 4 0.3 14% 9% 5 0.2 15% 8% The variances of Stocks A and B are _____ and _____, respectively. Group of answer choices .015%; .019% .022%; .012% .032%; .02% .015%; .011% .014%; .021%
Consider the following probability distribution for stocks A and B: Table 4 Probability Distribution for Stocks A and B State Probability Return on Stock A Return on Stock B 1 0.1 10% 8% 2 0.2 13% 7% 3 0.2 12% 6% 4 0.3 14% 9% 5 0.2 15% 8% The variances of Stocks A and B are _____ and _____, respectively. Group of answer choices .015%; .019% .022%; .012% .032%; .02% .015%; .011% .014%; .021%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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| Consider the following probability distribution for stocks A and B: | |||
| Table 4 Probability Distribution for Stocks A and B | |||
| State | Probability | Return on Stock A | Return on Stock B |
| 1 | 0.1 | 10% | 8% |
| 2 | 0.2 | 13% | 7% |
| 3 | 0.2 | 12% | 6% |
| 4 | 0.3 | 14% | 9% |
| 5 | 0.2 | 15% | 8% |
| The variances of Stocks A and B are _____ and _____, respectively. | |||
| Group of answer choices | |||
| .015%; .019% | |||
| .022%; .012% | |||
| .032%; .02% | |||
| .015%; .011% | |||
| .014%; .021% |
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