Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

31. FB Energys stock has the following probability distribution: If economy is good (the probability is 20%), its expected stock return is 20%; if economy

31. FB Energys stock has the following probability distribution: If economy is good (the probability is 20%), its expected stock return is 20%; if economy is on average (the probability is 60%), its expected stock return is 10%; if economy is bad (the probability is 20%), its expected return is -20%. Find the expected rate of return for the stock.

4.0%

6.0%

Using the data from Question 31, find the standard deviation (risk) for FB Energys stock

11.49%

12.59%

13.56%

14.56%

10.0%

14.0%

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

Practical financial management

Authors: William r. Lasher

5th Edition

0324422636, 978-0324422634

More Books

Students also viewed these Finance questions

Question

Carbonate Name: Formula: Part 4 of 4 HSe Name: Formula

Answered: 1 week ago

Question

Explain Coulomb's law with an example

Answered: 1 week ago

Question

What is operating system?

Answered: 1 week ago

Question

What is Ohm's law and also tell about Snell's law?

Answered: 1 week ago

Question

LO3.3 Describe supply and explain how it can change.

Answered: 1 week ago

Question

LO3.1 Characterize and give examples of markets.

Answered: 1 week ago