Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The stock of Business Adventures sells for $60 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by
The stock of Business Adventures sells for $60 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Dividend Stock price Boom $2.00 13 Normal economy 1.50 63 Recession .70 59 Calculate the standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answer to 4 decimal places) Standard deviation? 0.0113 The stock of Business Adventures sells for $60 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Dividend Stock price Boom $2.00 $73 Normal economy 1.50 63 Recession .70 59 Calculate the standard deviation of the holding period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answer to 4 decimal places) Standard deviation? 0.0113
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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