Question: Based on the following information, calculate the expected return and standard deviation for the stock. State Probability of State Return Recession .15 0% Normal .55
Based on the following information, calculate the expected return and standard deviation for the stock.
| State | Probability of State | Return |
| Recession | .15 | 0% |
| Normal | .55 | 10% |
| Boom | .30 | 14% |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
