Question
. Makamony Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns
. Makamony Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below. What's the standard deviation of the estimated returns?
Economic Conditions Prob. Return
Strong 40% 35.0%
Normal 40% 12.0%
Weak 20% -18.0%
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
