AAFM Exam GLO_CWM_LVL_1 Topic 8 Question 86 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 86
Topic #: 8

[All GLO_CWM_LVL_1 Questions]

The probability distribution of the rate of return on ABC stock is given below:

What is the standard deviation of return?

A11.40%

B12.90%

C10.50%

D13.50%

Show Suggested Answer

Suggested Answer: B

by Alexia at Aug 02, 2024, 02:21 PM

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Felix

7 months ago

Haha, these probability questions always have a way of making you feel like you're in a carnival funhouse. But hey, at least it's not as bad as trying to calculate the standard deviation of a clown's laugh, right?

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Matt

7 months ago

Hold on, are we sure we're not just overthinking this? I mean, the most obvious choice here is C - 10.50%. Simple as that!

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Winfred

7 months ago

Yeah, I agree. Let's go with C - 10.50%.

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Louis

7 months ago

I think you might be right, C does seem like the most straightforward choice.

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Katina

7 months ago

Ah, this is a tricky one! But I'm going to have to go with option D - 13.50%. You can never be too sure with these probability questions, you know?

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Lottie

8 months ago

Hmm, I'm not so sure about that. The distribution looks a bit skewed to me, so I'm going to go with option B - 12.90%.

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Markus

8 months ago

I calculated it using the formula provided in the textbook.

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Crista

8 months ago

I think the standard deviation of return is 11.40%. The image shows the probability distribution, and based on that, 11.40% seems like the correct answer.

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