Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock will have a loss of 12.8 percent in a recession, a return of 11.5 percent in a normal economy, and a return

image text in transcribed

A stock will have a loss of 12.8 percent in a recession, a return of 11.5 percent in a normal economy, and a return of 26.2 percent in a boom. There is 25 percent probability of a recession, 44 percent probability of normal economy, and 31 percent probability of boom. What is the standard deviation of the stock's returns?

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

Financial statements

Authors: Stephen Barrad

5th Edition

978-007802531, 9780324186383, 032418638X

More Books

Students also viewed these Finance questions