3. Security A has the following probability distribution of returns: Scenario Probability Return 0.1 15% 0.8 25% 0.1 35% What is the variance for Security A? a. 0.002 b. 0.020 С. 0.200 d. 0.300 2 3
3. Security A has the following probability distribution of returns: Scenario Probability Return 0.1 15% 0.8 25% 0.1 35% What is the variance for Security A? a. 0.002 b. 0.020 С. 0.200 d. 0.300 2 3
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 2PROB
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3. Security A has the following probability distribution of returns:
Scenario
Probability
Return
1
0.1
15%
2
0.8
25%
0.1
35%
What is the variance for Security A?
a.
0.002
b.
0.020
С.
0.200
d.
0.300
3.
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