Question
Following are three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.20 41 % Slow growth 0.62 16 Recession
| Following are three economic states, their likelihoods, and the potential returns: |
| Economic State |
| Probability |
| Return | |
| Fast growth |
| 0.20 |
| 41 | % |
| Slow growth |
| 0.62 |
| 16 |
|
| Recession |
| 0.18 |
| 34 |
|
| Determine the standard deviation of the expected return. (Do not round intermediate calculations and round your answer to 2 decimal places.) |
| Standard deviation _________ % |
|
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
Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
