Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please do it in 20 minutes please urgently... I'll give you up thumb definitely 11 The rates of return for a stock are as follows:

image text in transcribed

please do it in 20 minutes please urgently... I'll give you up thumb definitely

11 The rates of return for a stock are as follows: 2% if the state of the economy is recession, 8% if the state of the economy is normal, and 11% if the state of the economy is expansion. The probability for each state of the economy is 25%, 45%, and 30%, respectively. Assume the stock has an expected rate of return of 7.4%. What is the variance for this stock? 4 points 2 01:55:11 Do not round intermediate calculations. Round the final answer to 5 decimal places. For example, an answer of 0.123456789 should be entered as 0.12345 (not 12.34567%). Numeric Response

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Finance: An Object-Oriented Approach In C++

Authors: Erik Schlogl, Dilip B. Madan

1st Edition

1584884797, 978-1584884798

More Books

Students also viewed these Finance questions