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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 | 0.1 | -0.13 |
| Normal | 0.46 | 0.06 |
| Boom | -- | 0.16 |
Enter answer in percents, accurate to two decimal places.
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
23rd Edition
1647084105, 978-1647084103
