Question
Returns on ABC, Inc. are forecast to be the following: State Probability Return Boom 0.25 30% Normal 0.65 15% Bust 0.10 -11% What is the
Returns on ABC, Inc. are forecast to be the following:
| State | Probability | Return |
|---|---|---|
| Boom | 0.25 | 30% |
| Normal | 0.65 | 15% |
| Bust | 0.10 | -11% |
What is the standard deviation of this company's stock?
Returns on ABC, Inc. are forecast to be the following:
| State | Probability | Return |
|---|---|---|
| Boom | 0.25 | 30% |
| Normal | 0.65 | 15% |
| Bust | 0.10 | -11% |
What is the standard deviation of this company's stock?
11.82%
11.56%
11.32%
11.07%
10.83%
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Modern Principles of Economics
Authors: Tyler Cowen, Alex Tabarrok
3rd edition
1429278390, 978-1429278416, 1429278412, 978-1429278393
