Question
Janette is considering an investment in Parson Inc. and has gathered the information in the following table. What is the standard deviation for a share
Janette is considering an investment in Parson Inc. and has gathered the information in the following table. What is the standard deviation for a share of the firm's stock?
| State of the Economy | Probability of the State | Conditional Expected Return Parson Inc. |
| Recession | .25 | -20% |
| Steady | .60 | 10% |
| Boom | .15 | 55% |
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Financial Management Principles And Practice
Authors: Timothy Gallagher
7th Edition
0996095462, 978-0996095464
