A mutual fund might produce 5% return, with 40% probability, and 4% return, with 60% probability. Thus the standard deviation of this asset is: " with steps"
a.1.67%
b.0.49%
c.0.34%
d.0.65%
e.0.23%
5×0.4+4×0.6=4.45\times0.4+4\times0.6=4.45×0.4+4×0.6=4.4
standarddeviation=((5−4.4)2+(4−4.4)22−1)0.5=0.51standard deviation=(\frac{(5-4.4)^2+(4-4.4)^2}{2-1})^{0.5}=0.51standarddeviation=(2−1(5−4.4)2+(4−4.4)2)0.5=0.51
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