Question
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 | 0.11 | -0.27 |
| Normal | 0.41 | 0.07 |
| Boom | -- | 0.16 |
Enter answer in percents, accurate to two decimal places.
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th International Edition
1259094901, 9781259094903
