Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stock W has the following returns for various states of the economy: State of the Economy Probability Stock Ws Return Recession 20% -10% Moderate Growth

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

State of the Economy Probability Stock Ws Return

Recession 20% -10%

Moderate Growth 50% 5%

Boom 30% 15%

what is Stock Ws standard deviation of returns?

a. 8.66%

b. 7.56%

c. 5.29%

d. 4.38%

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

International Finance Transactions Policy And Regulation

Authors: Hal Scott, Anna Gelpern

20th Edition

1609303164, 978-1609303167

More Books

Students also viewed these Finance questions

Question

Compare the JDR Model with the DCSM and the ERI Model from Chapter

Answered: 1 week ago

Question

What abilities are possible because humans use symbols?

Answered: 1 week ago