Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A stock's return has the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return if This Demand Occurs (%)
A stock's return has the following distribution:
Demand for the Company's Products | Probability of This Demand Occurring | Rate of Return if This Demand Occurs (%) | ||
Weak | 0.1 | -25% | ||
Below average | 0.2 | -8 | ||
Average | 0.4 | 12 | ||
Above average | 0.2 | 25 | ||
Strong | 0.1 | 65 | ||
1.0 |
Calculate the stock's expected return. Round your answer to two decimal places. %
Calculate the standard deviation. Round your answer to two decimal places. %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started