Question
A stock had historical monthly returns of -3.3%, 4%, 2.30%, 2%,-1.2% and 4%. Based on this data, the stock would have an annual expected return
A stock had historical monthly returns of -3.3%, 4%, 2.30%, 2%,-1.2% and 4%. Based on this data, the stock would have an annual expected return of ______ and an annual standard deviation of ______. Please explain
15.60%; 10.22%
15.05%; 8.93%
15.60%; 9.63%
15.05%; 9.29%
An analyst estimates a 26% probability of a recession next year, a 50% probability of normal economic growth and a 24% probability of a strong recovery. If a recession occurs a stock is projected to have a -16.1% return. With normal growth the stock will generate a 11.1% return and if the strong recovery occurs the stock will have a 26.1% rate of return. This stock's standard deviation is _______. |
7.63%
12.53%
12.26%
15.31%
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