Question

Scenario 5.4:
Suppose an individual is considering an investment in which there are exactly three possible outcomes, whose probabilities and pay-offs are given below:
OutcomeProbabilityPay-offs
A.3$100
B?50
C.2?

The expected value of the investment is $25. Although all the information is correct, information is missing.
Refer to Scenario 5.4. What is the standard deviation of the investment?
A) 0
B) 16.58
C) 56.12
D) 90.14
E) none of the above

Answer

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