Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stock Q has the following returns for various states of the economy: State of the Economy Probability Stock W's Return Recession 10% -30% Below Average

Stock Q has the following returns for various states of the economy:

State of the Economy Probability Stock W's Return
Recession 10% -30%
Below Average 20% -2%
Average 40% 10%
Above Average 20% 18%
Boom 10% 40%

Stock Q's variance of returns is _______.

  • A. 288.36 %^2.
  • B. 14%.
  • C. 196 %^2.
  • D. 17%.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essential Mathematics For Economic Analysis

Authors: Knut Sydsaeter, Peter Hammond

3rd Edition

0273713248, 9780273713241

More Books

Students also viewed these Finance questions

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago