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Question 1 Calculate the expected return on stock of Gamma Inc.: State of the economy Probability of the states Percentage returns Economic recession 12% -4.0%
Question 1
Calculate the expected return on stock of Gamma Inc.:
State of the economy | Probability of the states | Percentage returns |
---|---|---|
Economic recession | 12% | -4.0% |
Steady economic growth | 31% | 3.7% |
Boom | Please calculate it | 14.4% |
Round the answers to two decimal places in percentage form.
Question 2
Calculate the expected standard deviation on stock:
State of the economy | Probability of the states | Percentage returns | |
---|---|---|---|
Economic recession | 12% | -9% | |
Steady economic growth | 36% | 7% | |
Boom | Please calculate it | 17% |
Round the answers to two decimal places in percentage form. (
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