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If the economy booms, Monster Beverage stock is expected to return 20%. If the economy goes into a recessionary period, then Monster Beverage is expected
If the economy booms, Monster Beverage stock is expected to return 20%. If the economy goes into a recessionary period, then Monster Beverage is expected to only return 5%. The probability of a boom is 40% while the probability of a recession is 60%. What is the standard deviation of the returns on Monsters stock?
a)10.29% | ||
b) | 5.42% | |
c) | 3.8% | |
d) | 11.0% |
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