An analyst predicts that the likelihood of a great economy is 40%, while an average and poor economic states share 30% probabilities each. It is predicted that in a good economy, the stock will provide a 20% return, a 10% in an average economy and a 2% return in a poor economy. Calculate the standard deviation of the stock.

Answer rating: 100% (QA)

To calculate the standard deviation of the stock returns we need to consider the probabilities of ea... View the full answer