Question
You've estimated the following expected returns for a stock, depending on the strength of the economy: State Probability Expected return Recession 0.1 -0.01 Normal 0.5
You've estimated the following expected returns for a stock, depending on the strength of the economy:
State Probability Expected return
Recession 0.1 -0.01
Normal 0.5 0.1
Expansion 0.4 0.15
What is the standard deviation of returns for the stock?
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Globalization Gating And Risk Finance
Authors: Unurjargal Nyambuu, Charles S. Tapiero
1st Edition
1119252652, 978-1119252658
