Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You're trying to calculate the standard deviation of stock JBF. You believe that JBF has a 26% chance of great performance over the next year,

image text in transcribed
You're trying to calculate the standard deviation of stock JBF. You believe that JBF has a 26% chance of great performance over the next year, in which case it will generate a 43% stock return. You believe that there is a 25% chance that JBF will have good performance, and generate a return of 22%. You believe there is also a chance that JBF will have poor performance, and generate a return of 13%. The risk free rate is 1%. What is the standard deviation of returns for JBF? Present your answer in percent format and round your answer to two decimal places. Question 19 0 pts For Partial Credit: Input the calculation that you did for the JBF's expected return: Input the calculation that you did for JBF's variance: You're trying to calculate the standard deviation of stock JBF. You believe that JBF has a 26% chance of great performance over the next year, in which case it will generate a 43% stock return. You believe that there is a 25% chance that JBF will have good performance, and generate a return of 22%. You believe there is also a chance that JBF will have poor performance, and generate a return of 13%. The risk free rate is 1%. What is the standard deviation of returns for JBF? Present your answer in percent format and round your answer to two decimal places. Question 19 0 pts For Partial Credit: Input the calculation that you did for the JBF's expected return: Input the calculation that you did for JBF's variance

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

Petromania Black Gold Paper Barrels And Oil Price Bubbles

Authors: Daniel O'Sullivan

1st Edition

1906659249,190665977X

More Books

Students also viewed these Finance questions