Investment analysts will exam a stock performance in the next month. If the stock price moves...
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Investment analysts will exam a stock performance in the next month. If the stock price moves up, the monthly return will be 2% with 60% of probability. If the stock price drops, the monthly return will be -0.5% with 30% of probability. Otherwise, the stock price stays flat, the monthly return is zero. What is the the expected monthly return and standard deviation of this stock separately? 1.05% and 1.17% 1% and 1.22% 1.05% and 1.12% 1% and 1.06% Investment analysts will exam a stock performance in the next month. If the stock price moves up, the monthly return will be 2% with 60% of probability. If the stock price drops, the monthly return will be -0.5% with 30% of probability. Otherwise, the stock price stays flat, the monthly return is zero. What is the the expected monthly return and standard deviation of this stock separately? 1.05% and 1.17% 1% and 1.22% 1.05% and 1.12% 1% and 1.06%
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Related Book For
Financial Theory and Corporate Policy
ISBN: 978-0321127211
4th edition
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
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