Calculate the standard deviation for Stock J based on the in
Calculate the standard deviation for Stock J based on the information given above. Please show work
| Probability | rM | rJ |
| 0.3 | 12% | 19% |
| 0.4 | 10 | 6 |
| 0.3 | 20 | 10 |
Solution
First find mean
Mean = ( 19+6+10)/3
=11.67
Variance = ( (11.67-19)2 +(11.67-6)2 +(11.67-10)2)))/3
= 29.56
ST = sqrt ( variance )
=5.44
