Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Following are three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.20 30 % Slow growth 0.58 5 Recession
| Following are three economic states, their likelihoods, and the potential returns: |
| Economic State | Probability | Return | |||
| Fast growth | 0.20 | 30 | % | ||
| Slow growth | 0.58 | 5 | |||
| Recession | 0.22 | 35 | |||
| Determine the standard deviation of the expected return. (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
Equity Valuation And Portfolio Management
Authors: Frank J. Fabozzi, Harry M. Markowitz
1st Edition
047092991X, 9780470929919
