Question
Problem 11-3 Expected Returns and Deviations (LO1, CFA2) Use the following information on states of the economy and stock returns to calculate the standard deviation
Problem 11-3 Expected Returns and Deviations (LO1, CFA2)
Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. Assume that all three states are equally likely. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
| State of Economy | Security Return if State Occurs | ||||||||||
| Recession | 7.00 | % | |||||||||
| Normal | 9.00 | ||||||||||
| Boom | 21.00 | ||||||||||
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Global Corporate Finance A Focused Approach
Authors: Suk Hi Kim, Kenneth A Kim
2nd Edition
9814618004, 9789814618007
