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Please can you help me with these questions? Please show work. .30 12. Consider the following information: State of Economy Probability of State of Rate
Please can you help me with these questions? Please show work.
.30 12. Consider the following information: State of Economy Probability of State of Rate of Return Economy Boom .18 Normal .65 .11 Recession .05 -.06 a. What is the mean of the returns on this stock? b. What is the variance of the returns on this stock? C. What is the standard deviation of the returns on this stock? 13. Over the period of 1926-2011, U. S. Treasury bills had an average return of 3.8 percent while inflation averaged 3.1 percent. Based on this historical record, is it safe to assume that an investor in U.S. Treasury bills will enjoy a positive real rate of return each year? Why or why notStep by Step Solution
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