Question: Based on the following information, calculate the expected return and standard deviation: State of the Economy Probability Rate of Return Depression -.107 15 Recession 20


Based on the following information, calculate the expected return and standard deviation: State of the Economy Probability Rate of Return Depression -.107 15 Recession 20 069 Normal 40 135 Boom 215 25 Fill in the values in the spreadsheet. Input area: Stock A Probability State Depression 0.15 0.107 Recession 0.20 0.069 0.40 Normal 0.135 Boom 0.25 0.215 Output area: Squared Deviation Return Stock A Depression Return Product Deviation Product Probability Recession Normal Boom E(R) = 0.0000 Variance Standard Deviation 0.00%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
