Multiple Choice
Stuart Company's manager believes that economic conditions during the next year will be strong,normal,or weak,and she thinks that the firm's returns will have the probability distribution shown below.What's the standard deviation of the estimated returns? (Hint: Use the formula for the standard deviation of a population,not a sample. )
Economic
Conditions
Prob.
Return
Strong
30%
32) 0%
Normal
40%
10) 0%
Weak
30%
−16) 0%
A) 17.69%
B) 18.62%
C) 19.55%
D) 20.52%
E) 21.55%
Correct Answer:
Verified
Correct Answer:
Verified
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