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he following probability distributions of returns for Stock A have been estimated. What is the standard deviation of Stock A? State of the economy Probability
he following probability distributions of returns for Stock A have been estimated. What is the standard deviation of Stock A?
State of the economy | Probability of state occurring | E(RA) |
Boom | 0.3 | 12% |
Normal | 0.4 | 8% |
Recession | 0.3 | 6% |
0.775% | ||
2.375% | ||
6.314% | ||
8.600% |
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