3 Probability Weighted Mean And Standard Deviation A Financial Analyst Following Singh Inc Has Created The Following 1 (61.41 KiB) Viewed 30 times
3. Probability-weighted mean and standard deviation A financial analyst following Singh, Inc. has created the following probability distribution to describe Singh's expected return over the next year. Singh's fortunes rely on the success of a new product. The probability distribution shown reflects the analyst's expectation of the stock's return depending on how well the new product sells. Condition Bad Average Great 14.00% What is the expected return on the stock? 21.00% 19.00% 10.50% Probability Return 0.20 -40% 10% 45% O 15.50% 0.40 0.40
What is the expected standard deviation of stock returns? (Hint: Please do not round any intermediate calculations. Round your final answer to 2 decimals) 33.38% 29.44% 24.23% 25.67% O 31.21%
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