Carson Inc 's manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm 's returns will have the probability distribution shown below What is the standard deviation of the company 's expected stock return Economic Conditions Prob Re...

b 2189 Calculating the Expected return E Rp 03 034 04 01 ...

Carson Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak,

Question:

Carson Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability shown below. What is the standard deviation of the company's expected stock return?
Economic Conditions Prob. Return
Strong.....................................30%.................34.0%
Normal....................................40%.................10.0%
Weak.......................................30%................-16.0%
a. 22.28%
b. 21.89%
c. 15.88%
d. 20.92%
e. 19.37%
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...