FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given the following information about a stock's return in the various states of the economy, calculate the standard deviation of its return. State of economy

image text in transcribed

Given the following information about a stock's return in the various states of the economy, calculate the standard deviation of its return. State of economy Probability Stock return Recession 0.15 -0.21 Normal 0.31 0.09 Boom 0.17 Enter answer in percents, accurate to two decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sustainable Value Creation An Inevitable Challenge To Business And Society

Sustainable Value Creation An Inevitable Challenge To Business And Society

Authors: Teun Wolters

1st Edition

3031353501, 978-3031353505

More Books

Students also viewed these Finance questions

Question

=+List the advantages and disadvantages of working in teams and describe the characteristics of effective teams

Answered: 1 week ago

Question

★★★★★
Condensed financial data of Granger Inc. follow. Additional information: 1. New plant assets costing $100,000 were purchased for cash during the year. 2. Old plant assets having an original cost of...

Answered: 1 week ago

Question

★★★★★
An investment offers $5,700 per year for 25 years, with the first payment occurring 1 year from now. If the required return is 8%, what is the value of the investment

Answered: 1 week ago

Question

★★★★★
the Bag and Baggage Company has the following account balances as of January 1: in material inventory $ 9,200 working in the process of completing the inventory 78, 400 finished good inventory 53,...

Answered: 1 week ago

Question

★★★★★
Why are research hypotheses considered tentative? Select answer from the options below They involve two variables. They are only verified after being empirically tested. They are only interesting to...

Answered: 1 week ago

Question

★★★★★
Assuming the friends decide to offer the securities publicly, but only in their home state, they must: apply for a blue-sky exemption. confirm that all purchasers are accredited investors. register...

Answered: 1 week ago

Question

★★★★★
In the case study Metagenom Bio Inc: Protecting Intellectual Property Rights in China. What are the social and legal models in China for the protection of IPR? What are the challenges to an entity's...

Answered: 1 week ago

Question

★★★★★
An insurer has $2,500,000 in total earned premiums for the year. It experiences and pays out in one year $1,000,000 in total losses and $500,000 in underwriting expenses. As a result, under statutory...

Answered: 1 week ago

Question

★★★★★
Shakeia Duncan wants to know what home price she can afford. Her annual gross income is $ 4 6 , 8 0 0 . She owes $ 8 3 0 per month on other debts and expects her property taxes and homeowner's...

Answered: 1 week ago

Previous Question Next Question