Question
You have been assigned to examine the following funds with their respective probabilities: Stock Fund X Stock Fund Y Scenario Probability Rate of Return (%)
You have been assigned to examine the following funds with their respective probabilities:
|
|
| Stock Fund X | Stock Fund Y |
| Scenario | Probability | Rate of Return (%) | Rate of Return (%) |
| Severe recession | 0.05 | -5 | 11.2 |
| Mild recession | 0.15 | -1.6 | 3.3 |
| Normal growth | 0.55 | 7.7 | 0.5 |
| Boom | 0.25 | 16.3 | -4.1 |
What is the variance of the stock fund Y?
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Applied International Finance
Authors: Thomas J O'Brien
1st Edition
1606497340, 9781606497340
