Question
Problem 8: You are given the following probability distribution for a stock: Pr. Outcome.6 .4 -4% .6 12% (A. Compute the expected return) (B. Compute
Problem 8:
You are given the following probability distribution for a stock:
| Pr. | Outcome.6 |
| .4 | -4% |
| .6 | 12% |
(A. Compute the expected return) (B. Compute the standard deviation) (C. Presuming the stock returns are normally distributed, what do these results indicate?)
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Options Futures And Other Derivatives
Authors: John C. Hull
7th Edition
0136015867, 9780136015864
