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1 - What is the range, expected rate of return, variance, and standard deviation of the information below? Economic Condition Probability Expected Return Better than
1 - What is the range, expected rate of return, variance, and standard deviation of the information below?
Economic Condition | Probability | Expected Return |
Better than expected | 0.15 | 0.65 |
Good | 0.25 | 0.3 |
Average | 0.45 | 0.15 |
Poor | 0.1 | -0.15 |
Terrible | 0.05 | -0.35 |
2 - A stock has a beta of 1.65, risk-free rate of return of 0.04, and a market risk premium of 0.15. What is the required rate of return?
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