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Question 1 (1 point) 1. Calculate the expected return on stock of Gamma Inc.: State of the economy Probability of the states Percentage returns Economic
Question 1 (1 point)
1. Calculate the expected return on stock of Gamma Inc.:
| State of the economy | Probability of the states | Percentage returns |
|---|---|---|
| Economic recession | 12% | -3.0% |
| Steady economic growth | 48% | 2.8% |
| Boom | Please calculate it | 12.0% |
Question 2 (1 point)
Calculate the expected standard deviation on stock:
| State of the economy | Probability of the states | Percentage returns | |
|---|---|---|---|
| Economic recession | 17% | -3% | |
| Steady economic growth | 26% | 8% | |
| Boom | Please calculate it | 11% |
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