AAFM GLO_CWM_LVL_1 Exam - Topic 7 Question 69 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 69
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 Quentin at Nov 25, 2023, 03:12 AM

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Reita

3 months ago

Wait, how did we even get these numbers?

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Lenita

4 months ago

I agree, 13.50% feels a bit high for this stock.

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Fannie

4 months ago

I’m not so sure about that, 10.50% seems too low.

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Delpha

4 months ago

Definitely going with 11.40%!

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Trina

4 months ago

I think the standard deviation is 12.90%.

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Gearldine

5 months ago

I’m leaning towards 11.40% based on my calculations, but I’m not confident. I wish I had practiced more on these types of problems!

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Torie

5 months ago

I feel like I might have seen a similar question before, but I can't recall the exact steps. I hope it's not 10.50% because that seems too low for a stock return.

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Hassie

5 months ago

I remember a practice question where we had to find the standard deviation, and I think it involved squaring the differences from the mean. Could it be one of the higher percentages like 12.90%?

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Sabina

5 months ago

I think the standard deviation is related to how spread out the returns are, but I'm not entirely sure how to calculate it from the distribution.

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Ilona

5 months ago

This seems doable. I'll focus on calculating the variance first, then take the square root to get the standard deviation. I've got a good strategy for this type of problem.

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Charlie

5 months ago

Wait, how do I find the standard deviation from this probability distribution? I'm a bit lost on the steps here. Maybe I should review my notes before attempting this.

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Tyisha

5 months ago

Okay, I think I can do this. I just need to plug the given probabilities and returns into the standard deviation formula. I've got this!

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Malcom

5 months ago

Hmm, I'm a bit unsure about this one. I know standard deviation has something to do with the spread of the data, but I'm not sure how to calculate it from this information.

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Bobbye

5 months ago

This looks like a straightforward probability distribution problem. I'll start by calculating the mean return, then use that to find the standard deviation.

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Cordelia

5 months ago

Alright, I think I've got it. Lupus is a type III hypersensitivity reaction, where immune complexes deposit in tissues and cause inflammation. I'm feeling good about that.

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Theodora

5 months ago

I'm a little unsure about this one. The Cable Communications Policy Act covers a lot of different requirements, so I'll need to think it through methodically to determine the correct answer.

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Gracie

5 months ago

Hmm, I'm not sure which profile type I need to modify. I'll have to read through the options carefully.

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Verona

5 months ago

I remember that Eclipse attacks can isolate nodes, but I'm not sure if they fit the partitioning definition.

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