Question
An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Scenario Probability Rate of Return Recession 0.29 -6%
An investor is considering the purchase of Gryphon stock, which has returns given in the table below.
| Scenario | Probability | Rate of Return |
| Recession | 0.29 | -6% |
| Normal | 0.52 | 7% |
| Boom | 0.19 | 18% |
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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Foundations Of Financial Markets And Institutions
Authors: Franco Modigliani, Frank J. Jones, Michael G. Ferri, Frank J. Fabozzi
3rd Edition
0130180793, 978-0130180797
