Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer fast answer only and accuaretly please The returns on the common stock of Tesla are quite cyclical. In a boom economy, the stock
Please answer fast answer only and accuaretly please
The returns on the common stock of Tesla are quite cyclical. In a boom economy, the stock is expected to return 32 percent in comparison to 14 percent in a normal economy and a negative 28 percent in a recessionary period. The probability of a recession is 30 percent while the probability of a boom is 35 percent. What is the standard deviation of the returns on this stock? Select the choice that is closest to your answer. 21.41 percent 24.55 percent 26.09 percent 28.83 percent Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started