What is the expected standard deviation of stock A's returns based on the information presented in the table?
Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
Note that figures in the table are presented in decimal format, not as percentages.
Outcome |
Probability of outcome |
Stock A return in outcome |
Good |
0.2 |
0.7 |
Medium |
0.4 |
0.1 |
Bad |
? |
-0.1 |