Question: Assume that JQHs returns are normally distributed. The expected return for JQH is 10% and standard deviation is 5%. What is the probability of a
Assume that JQHs returns are normally distributed. The expected return for JQH is 10% and standard deviation is 5%. What is the probability of a return below 15%?
Returns on ABC, Inc. are forecast to be the following:
| State | Probability | Return |
|---|---|---|
| Boom | 0.25 | 30% |
| Normal | 0.65 | 15% |
| Bust | 0.10 | -14% |
What is the standard deviation of this companys stock?
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