Question
A stock will provide a rate of return of either 32% or 34%. a. If both possibilities are equally likely, calculate the stock's expected return
A stock will provide a rate of return of either 32% or 34%.a.If both possibilities are equally likely, calculate the stock's expected return and standard deviation.(Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.)
Expected return%Standard deviation%
b.If Treasury bills yield 1% and investors believe that the stock offers a satisfactory expected return, what must the market risk of the stock be?(Enter your answer as a whole percent.)
Market risk%
I have part A as 1% for the first one and it is correct
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