Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the standard deviation of the returns on a stock given the following information? State of Economy Probability of state of economy Rate of

What is the standard deviation of the returns on a stock given the following information?

State of Economy Probability of state of economy Rate of return if state occurs

Boom 30% 15%

Normal 65% 12%

Recession 5% 6%

4.01 percent

2.89 percent

1.57 percent

3.42 percent

2.03 percent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Freedom

Authors: Timothy Turner

1st Edition

1801573573, 978-1801573573

More Books

Students also viewed these Finance questions

Question

What is the tracking signal? Contrast it with the control chart.

Answered: 1 week ago