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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.
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Cases In Healthcare Finance
Authors: Louis C. Gapenski
3rd Edition
1567932444, 9781567932447
