Calculate the expected return on stock: State of the economy Probability of the states Percentage returns on
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Question:
Calculate the expected return on stock: |
State of the economy | Probability of the states | Percentage returns on stock |
Economic recession | 10% | -2.50% |
Boom | 45% | 4.60% |
Steady economic growth | 45% | 3.90% |
Round the answers to two decimal places. |
Answer 3.58% |
Step by step instruction |
16. Calculate standard deviation of the stock returns: |
State of the economy | Probability of the state of economy | Percentage return on stock |
Economic recession | 8% | 2.69% |
Boom | 56% | 16.70% |
Steady economic growth | 36% | 4.50% |
Round the answer to two decimal places in percentage form. |
Answer 6.24% |
Step by step instruction |
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