Question
We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability. E(rA,s) E(rB,s) Recession 0.1 -0.05
We know the following expected returns for stocks A and B, given different states of the economy:
State (s) Probability. E(rA,s) E(rB,s)
Recession 0.1 -0.05 0.02
Normal 0.5 0.1 0.05
Expansion 0.4 0.18. 0.09
Part 4
What is the standard deviation of returns for stock B?
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Management And Cost Accounting
Authors: Colin Drury
6th Edition
1844807037, 978-1844807031
