Question
(Use the following data to answer the next two questions.) Rate of Return if State Occurs State of Economy Probability of State of Economy Stock
(Use the following data to answer the next two questions.)
|
|
| Rate of Return if State Occurs | |
| State of Economy | Probability of State of Economy | Stock A | Stock B |
| Recession | 0.20 | 0.06 | -0.19 |
| Normal | 0.50 | 0.08 | 0.16 |
| Boom | 0.30 | 0.16 | 0.34 |
9. Compute the expected return on each asset.
10. Compute the standard deviation of the return on each asset. Which is riskier?
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Who Is Your Competition You Real Estate Wholesaling Questions Answers And Tools To Help Beginners Crush Their Fears And Stop Procrastinating
Authors: Nick Zalonis
1st Edition
1716097193, 978-1716097195
