AAFM Exam GLO_CWM_LVL_1 Topic 7 Question 76 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 76
Topic #: 7

[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 Nana at Apr 09, 2024, 11:35 AM

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Nan

12 days ago

Hah, good one! Maybe we can convince the proctor to let us use our phones. 'It's for a more accurate calculation, I swear!'

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Joanne

14 days ago

Hold up, are we sure we can't just use a calculator for this? I mean, who actually wants to do the math by hand these days?

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Jerry

15 days ago

You know, I was thinking the same thing. 12.90% just has a nice ring to it, doesn't it? Although, I shouldn't be choosing answers based on how they sound!

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Gracia

16 days ago

Hmm, I'm leaning towards option B, 12.90%. The distribution looks somewhat symmetrical, and that feels like a reasonable standard deviation for stock returns.

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Craig

18 days ago

Oh man, this is going to test our understanding of statistics. I think the key here is to really focus on calculating the standard deviation from the given probability distribution.

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Deane

19 days ago

This question is definitely going to be a tough one. I'm not sure I'm comfortable with the probability distribution format, it looks a bit confusing.

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