Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.You have been given this probability distribution for the return for a stock: State of the Economy Probability Return Boom 0.30 22% Normal growth 0.20

1.You have been given this probability distribution for the return for a stock:

State of the Economy Probability Return

Boom 0.30 22%

Normal growth 0.20 11%

Recession 0.50 -9% .

Calculate the standard deviation of the stock?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Econometrics For Finance

Authors: Chris Brooks

3rd Edition

1107661455, 9781107661455

More Books

Students also viewed these Finance questions