Question
Calculate the expected return on stock of Gamma Inc.: State of the economy Probability of the states Percentage returns Economic recession 25% -9.4% Steady economic
Calculate the expected return on stock of Gamma Inc.:
| State of the economy | Probability of the states | Percentage returns |
|---|---|---|
| Economic recession | 25% | -9.4% |
| Steady economic growth | 41% | 4.2% |
| Boom | Please calculate it | 14.6% |
Round the answers to two decimal places in percentage form.
Calculate the expected standard deviation on stock:
| State of the economy | Probability of the states | Percentage returns | |
|---|---|---|---|
| Economic recession | 30% | -1% | |
| Steady economic growth | 34% | 7% | |
| Boom | Please calculate it | 17% |
Round the answers to two decimal places in percentage form.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Contemporary Financial Management
Authors: R. Charles Moyer, James R. Mcguigan, William J. Kretlow
9th Edition
032416470X, 9780324164701
