FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following probability distributions of returns for Stock A have been estimated. What is the standard deviation of Stock A? State of the economy Probability

The following probability distributions of returns for Stock A have been estimated. What is the standard deviation of Stock A?

State of the economy Probability of state occurring E(RA)
Boom 0.3 12%
Normal 0.4 8%
Recession 0.3 6%

0.775%

2.375%

6.314%

8.600%

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

Financial Crimes

Financial Crimes

Authors: Maximilian Edelbacher, Peter Kratcoski, Michael Theil

1st Edition

0367866528, 978-0367866525

More Books

Students also viewed these Finance questions

Question

★★★★★
Read and analyze the research paper "Cache Memory Optimization". Built up understanding by the conducting the research about it and related articles then write a summary report using your own word....

Answered: 1 week ago

Question

★★★★★
=+The set function P* has four properties that will be needed: (i) P*() = 0; (ii) P* is nonnegative: P*( A) 0 for every A CO; (iii) P* is monotone: A C B implies P*(A) P*(B); (iv) P* is countably...

Answered: 1 week ago

Question

★★★★★
Use the information provided in Problem P3-18 about Superstar Ice Rinks Inc. (SIR) to do the following: a. Prepare all necessary journal entries for fiscal 2017. Provide an explanation for each...

Answered: 1 week ago

Question

★★★★★
Walter owns a whole-life insurance policy worth $60,100 that directs the insurance company to pay the beneficiary $335,000 on Walters death. Walter pays the annual premiums and has the power to...

Answered: 1 week ago

Question

★★★★★
Why does change occur in an organization? Give an example.

Answered: 1 week ago

Question

★★★★★
Which of the following statements are true? i) The variance-covariance matrix has the corresponding covariances in the main diagonal. ii) The variance-covariance matrix can be used to estimate the...

Answered: 1 week ago

Question

★★★★★
Question 12 Identify the correct statement about an arm's-length transaction. 1 pts It is a transaction involving a party that is controlled by another entity and does not act on its own behalf. It...

Answered: 1 week ago

Question

★★★★★
Jack and Jill need to save $8600 toward a new car. How long willit take them if they save $280 a month earning an annual interestof 6.7% (compounded monthly)? (Treat as an ordinary annuity.)(State 1...

Answered: 1 week ago

Question

★★★★★
a) Derive the midpoint average equation fn-1 + fn+1 2 from the Taylor series expansion of fn-1 and fn+1 centered at fn- b) What is the accuracy of this approximation? Justify.

Answered: 1 week ago

Question

★★★★★
An ad for Hydroxycut, a dietary supplement sold as a weight loss aid, depicts a handsome man with an open shirt with ripped abdominal muscles who claims that he "was shocked at how fast Hydroxycut...

Answered: 1 week ago

Question

★★★★★
Your company recently announced a new benefit. According to the announcement, the company will pay for expenses associated with taking job-related coursework or pursuing a program of study leading to...

Answered: 1 week ago

Question

★★★★★
Technology. Refer to Case

Answered: 1 week ago

Question

★★★★★
Because your companys educational benefit is new, you have several questions about what expenses are covered. Ideally, you would like the company to reimburse you for tuition, fees, books, meals,...

Answered: 1 week ago

Previous Question Next Question