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You've estimated the following expected returns for a stock, depending on the strength of the economy: State (s) Probability Expected return Recession 0.3 -0.05 Normal
You've estimated the following expected returns for a stock, depending on the strength of the economy:
| State (s) | Probability | Expected return |
| Recession | 0.3 | -0.05 |
| Normal | 0.5 | 0.06 |
| Expansion | 0.2 | 0.11 |
What is the standard deviation of returns for the stock?
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Municipal Finances A Handbook For Local Governments
Authors: Catherine D. Farvacque-Vitkovic, Mihaly Kopanyi
1st Edition
082139830X, 978-0821398302
