Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock will have a loss of 12.3 percent in a bad economy, a return of 12.1 percent in a normal economy, and a return

A stock will have a loss of 12.3 percent in a bad economy, a return of 12.1 percent in a normal economy, and a return of 26 percent in a hot economy. There is 21 percent probability of a bad economy, 24 percent probability of a normal economy, and 55 percent probability of a hot economy. What is the variance of the stock's returns? Multiple Choice .01687 .03374 .14998 .02249 .04499

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_2

Step: 3

blur-text-image_3

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

Risk Management And Financial Institutions

Authors: John Hull

1st Edition

0132397900, 9780132397902

More Books

Students also viewed these Finance questions