Question
Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. (Do not round intermediate calculations. Enter
Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
| State of Economy | Probability of State of Economy | Security Return if State Occurs | ||||||||||
| Recession | .35 | 9.00 | % | |||||||||
| Normal | .30 | 14.00 | ||||||||||
| Boom | .35 | 23.00 | ||||||||||
Standard Deviation: ?%
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Cornerstones Of Financial Accounting
Authors: Jay Rich, Jeff Jones, Maryanne Mowen, Don Hansen
2nd Edition
0538473452, 9780538473453
