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An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Scenario Probability Rate of Return Recession 0.29 1%
An investor is considering the purchase of Gryphon stock, which has returns given in the table below.
Scenario | Probability | Rate of Return |
Recession | 0.29 | 1% |
Normal | 0.42 | 9% |
Boom | 0.29 | 16% |
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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