Question
Boom or bust corporation's common stock is expected to provide a -15% return if the economy tanks and 25% return if the economy is booming.
Boom or bust corporation's common stock is expected to provide a -15% return if the economy tanks and 25% return if the economy is booming. There is equal probability for the economy sliding into recession or performing at full employment GDP level.
A) what is the expected return on boom or bust's stock?
B) what is the standard deviation?
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
