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 | 7.00 | % | |||||||||
| Normal | 8.00 | ||||||||||
| Boom | 20.00 | ||||||||||
Expected Return =
Standard Deviation =
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Financial Statement Analysis & Dividend Investing
Authors: Andrew P.C.
1st Edition
1075873940, 978-1075873942
