Question
1- Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone. State of Economy Probability
1- Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone.
| State of Economy | Probability of state of economy | Security Return if state occurs |
|---|---|---|
| Recession | .25 | -8% |
| Normal | .50 | 13 |
| Boom | .25 | 23 |
2 Using the information in the previous question, calculate the standard deviation of returns.
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Handbook Of Consumer Finance Research
Authors: Jing Jian Xiao
2nd Edition
3319288857, 978-3319288857
