Question: 3 points Save Answer QUESTION 28 After some study of the economy, your forecast for next year is that a boom economy has a 30%
3 points Save Answer QUESTION 28 After some study of the economy, your forecast for next year is that a boom economy has a 30% chance of occurring a neutral economy 50%, and a bust economy a 20% chance of occurring. You also estimate that a certain stock would have a return of 34% in a boom economy next year, 20% in a neutral economy, and -11% in a bust economy. The risk-free rate is 4.4%. What is the standard deviation of expected returns for this stock next year? (Answer to the nearest tenth of a percent, but do not use a percent sign) Probability Return Boom Economy 30% 34% Neutral Economy 50% 20% Bust Economy 20% Risk Free Rate 4.4% -11
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