Question
Question 1 (1 point) a. Calculate the expected return on stock of Gamma Inc.: State of the economy Probability of the states Percentage returns Economic
Question 1 (1 point)
a.
Calculate the expected return on stock of Gamma Inc.:
| State of the economy | Probability of the states | Percentage returns |
|---|---|---|
| Economic recession | 15% | -5.2% |
| Steady economic growth | 30% | 2.7% |
| Boom | Please calculate it | 13.3% |
Round the answers to two decimal places in percentage form.
b.
Calculate the expected standard deviation on stock:
| State of the economy | Probability of the states | Percentage returns | |
|---|---|---|---|
| Economic recession | 26% | -10% | |
| Steady economic growth | 28% | 10% | |
| Boom | Please calculate it | 12% |
Round the answers to two decimal places in percentage form.
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Your Financial Future How To Take Control Of Your Financial Future
Authors: Deloris Lutke
1st Edition
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