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Using the following information, calculate the expected return and the standard deviation of Teal. (Round intermediate calculations to 4 decimal places, e.g. 15.2564 and the
Using the following information, calculate the expected return and the standard deviation of Teal. (Round intermediate calculations to 4 decimal places, e.g. 15.2564 and the final answers to 2 decimal places, e.g. 15.25%.)
State of the economy | Probability | Teal stock return (%) | ||
Depression | 0.20 | -6 | ||
Recession | 0.25 | 1.0 | ||
Normal | 0.35 | 7 | ||
Boom | 0.20 | 19 |
Expected return | % | |
Standard deviation | % |
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