Question
The returns of three stocks, (A, B and C), are given based on the state of the economy: Boom, Normal and Bust. State of Economy
The returns of three stocks, (A, B and C), are given based on the state of the economy: Boom, Normal and Bust. State of Economy Prob. of State Stock A Stock B Stock C Boom 0.15 0.15 0.25 0.11 Normal 0.30 0.07 0.13 0.10 Bust 0.55 -0.02 -0.135 0.03
(a) Compute the expected returns for each stock.
(b) Compute the standard deviation for each stock (also known as the proxy for risk).
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Multifractal Financial Markets An Alternative Approach To Asset And Risk Management
Authors: Yasmine Hayek Kobeissi
1st Edition
1461444896, 978-1461444893
