Question: A financial analyst forecasts two equally likely scenarios for the economic state in the next month: Economic state Return of stock B 16% Boom
A financial analyst forecasts two equally likely scenarios for the economic state in the next month: Economic state Return of stock B 16% Boom Normal How much is the standard deviation of the returns for stock B? 10%
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
The standard deviation of the returns for stock B is 30 We can calculate the standard deviation usin... View full answer
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
