Question
question 7 An investment earned the following returns for the years 2013 through 2016:15%, 5%, 30%, and 10%. What is the variance of returns for
question 7
An investment earned the following returns for the years 2013 through 2016:15%, 5%, 30%, and 10%. What is the variance of returns for this investment?
Select one:
a. 0.1541
b. 0.0892
c. 0.1747
d. 0.0323
e. 0.0117
question 8
Given the following information, what is the standard deviation of stock A if it has an expected return of 33% in a boom economy, an expected return of 18% in a good economy, and an expected return of 2% in a recession? The probabilities of boom, normal, recession are 0.2, 0.6, and 0.2, respectively.
Select one:
a. 0.0527
b. 0.0891
c. 0.0981
d. 0.0703
e. 0.0128
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started