Q4

You've estimated the following expected returns for a stock, depending on the strength of the economy: Part 1 Attempt 1/10 for 10 What is the expected return for the stock? Correct The expected return is the weighted average return across all states of the economy: E(R)=s(psE(Rs))=0.2(0.01)+0.50.1+0.30.15=0.093 What is the standard deviation of returns for the stock