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Intro You've estimated the following expected returns for a stock, depending on the strength of the economy: State (s) Probability Expected return Recession 0.2 -0.02
Intro
You've estimated the following expected returns for a stock, depending on the strength of the economy:
State (s) | Probability | Expected return |
Recession | 0.2 | -0.02 |
Normal | 0.5 | 0.09 |
Expansion | 0.3 | 0.14 |
Attempt 1/1
Part 1
What is the expected return for the stock?
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Attempt 1/1
Part 2
What is the standard deviation of returns for the stock?
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