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

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 0.12 -0.27 Normal 0.5 0.08 Boom -- 0.25 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

Introduction To Financial Technology

Authors: Roy S. Freedman

1st Edition

0123704782, 9780123704788

More Books

Students also viewed these Finance questions

Question

6. How is revising different from proofreading?

Answered: 1 week ago

Question

How does visua lization w ork? (p. 2 80)

Answered: 1 week ago

Question

Explain the causes of indiscipline.

Answered: 1 week ago

Question

Explain the factors influencing wage and salary administration.

Answered: 1 week ago