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Following are four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.30 60% Slow growth 0.50 13 Recession 0.15
Following are four economic states, their likelihoods, and the potential returns:
| Economic State | Probability | Return |
|---|---|---|
| Fast growth | 0.30 | 60% |
| Slow growth | 0.50 | 13 |
| Recession | 0.15 | 15 |
| Depression | 0.05 | -45 |
Compute the expected return and standard deviation.
Note: Round your answers to 2 decimal places.
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Essentials Of Real Estate Finance
Authors: Doris Barrell
15th Edition
1475462077, 978-1475462074
