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 | 6.00 | % | |||||||||
| Normal | 11.00 | ||||||||||
| Boom | 20.00 | ||||||||||
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Financial Management For Nurse Managers And Executives
Authors: Cheryl Jones, Steven A. Finkler, Christine T. Kovner, Jason Mose
5th Edition
0323415164, 9780323415163
