Question
An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Scenario Probability Rate of Return Recession 0.28 -5%
An investor is considering the purchase of Gryphon stock, which has returns given in the table below.
| Scenario | Probability | Rate of Return |
| Recession | 0.28 | -5% |
| Normal | 0.54 | 7% |
| Boom | 0.18 | 10% |
Calculate the expected return and standard deviation of Gryphon. Round your answers to 2 decimal places.
Enter your answers below.
E(r) = %
Std. Dev. = %
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International Financial Reporting Standards An Introduction
Authors: Belverd Needles, Marian Powers
2nd edition
053847680X, 978-1111793234, 1111793239, 978-0538476805
