State of Nature Recession Expansion Probability 70% 30% State Dependent Return A -.08 .28 State Dependent Return B -.04 .16 Given the data in the table above, what comes closest to the standard deviation of Stock A and the standard deviation of Stock B? O A. The standard deviation of Stock A = .10 and the standard deviation of Stock B =.1033 B. The standard deviation of Stock A = .10 and the standard deviation of Stock B =.0917 C. The standard deviation of Stock A = .02 and the standard deviation of Stock B =.1033 O D. The standard deviation of Stock A = .0000 and the standard deviation of Stock B =.0000 O E. The standard deviation of Stock A = .1650 and the standard deviation of Stock B =.0917

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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State of Nature
Recession
Expansion
Probability
70%
30%
State Dependent Return A
-.08
.28
State Dependent Return B
-.04
.16
Given the data in the table above, what comes closest to the standard deviation of Stock A and the standard deviation of Stock B?
A. The standard deviation of Stock A = .10 and the standard deviation of Stock B = .1033
B. The standard deviation of Stock A = .10 and the standard deviation of Stock B = .0917
C. The standard deviation of Stock A = .02 and the standard deviation of Stock B =.1033
D. The standard deviation of Stock A = .0000 and the standard deviation of Stock B = .0000
O E. The standard deviation of Stock A = .1650 and the standard deviation of Stock B =.0917
Transcribed Image Text:State of Nature Recession Expansion Probability 70% 30% State Dependent Return A -.08 .28 State Dependent Return B -.04 .16 Given the data in the table above, what comes closest to the standard deviation of Stock A and the standard deviation of Stock B? A. The standard deviation of Stock A = .10 and the standard deviation of Stock B = .1033 B. The standard deviation of Stock A = .10 and the standard deviation of Stock B = .0917 C. The standard deviation of Stock A = .02 and the standard deviation of Stock B =.1033 D. The standard deviation of Stock A = .0000 and the standard deviation of Stock B = .0000 O E. The standard deviation of Stock A = .1650 and the standard deviation of Stock B =.0917
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