Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The economy next year will be in three possible scenarios with equal probabilities: Boom, Normal, and Recession. The common stock of Escapist Films will earn
The economy next year will be in three possible scenarios with equal probabilities: Boom, Normal, and Recession. The common stock of Escapist Films will earn -28% in Boom, 8% in Normal, and 48% in Recession. What is the standard deviation of the stocks return?
a. 7.89%
b. 31.04%
c. 9.64%
d.16.52%
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