Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Given the following information, what is the standard deviation of the returns on this stock? State of Economy Probability of State Rate of Return Boom
Given the following information, what is the standard deviation of the returns on this stock?
| State of Economy | Probability of State | Rate of Return |
|---|---|---|
| Boom | 14% | 22% |
| Normal | 54% | 19% |
| Recession | 32% | -42% |
Standard Deviation = %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Introduction To Finance Markets Investments And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
14th Edition
0470561076, 9780470561072
