Question: Based on the following information, calculate the expected return and standard deviation for the stock. State Probability of State Return Recession 0.30 -20% Normal 0.40
Based on the following information, calculate the expected return and standard deviation for the stock.
| State | Probability of State | Return |
| Recession | 0.30 | -20% |
| Normal | 0.40 | 12% |
| Boom | 0.30 | 24% |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
