The return standard deviation for starcents is 20% if it generates returns of 5% or 45% with an equal likelihood for either.
What is the standard deviation of returns?
A measure of volatility or risk is the standard deviation of returns. You might anticipate more variability in returns the higher the return standard deviation.
For each investment in the calculation object, the simple monthly returns for the chosen comparison period are calculated in order to determine the standard deviation of returns.
The value weight and return standard deviation of each investment in the item are combined to form the object's standard deviation. Additionally, it depends on how the rewards from each investment in the thing vary from one another.
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