You are considering investing in stock A, it has the following possible return distribution: State Probability Return on

[answerhappygod]

You are considering investing in stock A, it has the following
possible return distribution:
State
Probability
Return on Stock A
1
0.2
11
2
0.1
14
3
0.3
15
4
0.15
11
5
0.25
12
You also know that the firm’s beta is 1.5. Which of the
following is closest the standard deviation of the stock
returns?
A. None of these options
b. 3.09
c. 1.76
d. 1.25
e. 2.64
f. 2.5