Question
An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Scenario Probability Rate of Return Recession 0.24 -2%
An investor is considering the purchase of Gryphon stock, which has returns given in the table below.
| Scenario | Probability | Rate of Return |
| Recession | 0.24 | -2% |
| Normal Economy | 0.53 | 5% |
| Boom | 0.23 | 17% |
Calculate the expected return and standard deviation of Gryphon. Round your answers to 2 decimal places.
E(r) = %
Std. Dev. = %
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
Personal Finance And Investments
Authors: Keith Redhead
1st Edition
0415428629, 978-0415428620
