Question
Boom or Bust Corporations common stock is expected to provide a -15% return if the economy tanks and 25% return if the economy is booming.
Boom or Bust Corporations 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 Busts stock? B.) What is the standard deviation?
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Lessons In Corporate Finance
Authors: Paul Asquith, Lawrence A. Weiss
2nd Edition
1119537835, 978-1119537830
