Question
An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Scenario Probability Rate of Return Recession 0.15 -6%
An investor is considering the purchase of Gryphon stock, which has returns given in the table below.
| Scenario | Probability | Rate of Return |
| Recession | 0.15 | -6% |
| Normal | 0.45 | 6% |
| Boom | 0.4 | 12% |
Calculate the expected return and standard deviation of Gryphon. Round your answers to 2 decimal places.
Enter your answers below.
E(r) = %
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Financial Management Of Health Care Organizations
Authors: William N. Zelman, Michael J. McCue, Noah D. Glick
3rd Edition
0470497521, 9780470497524
