Question
Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. Assume that all three states are
Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. Assume that all three states are equally likely. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
| State of Economy | Security Return if State Occurs | ||||||||||
| Recession | 5.00 | % | |||||||||
| Normal | 12.00 | ||||||||||
| Boom | 16.00 | ||||||||||
|
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Financial Accounting IFRS WileyPLUS NextGen Card With Loose Leaf Print Companion Set
Authors: Jerry J. Weygandt ,Paul D. Kimmel ,Donald E. Kieso
4th Edition
1119504708
