Question: Problem 10-18 Expected Return Risk (LG10-1) Following are three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.32 38
Problem 10-18 Expected Return Risk (LG10-1)
| Following are three economic states, their likelihoods, and the potential returns: |
| Economic State | Probability | Return | |||
| Fast growth | 0.32 | 38 | % | ||
| Slow growth | 0.34 | 11 | |||
| Recession | 0.34 | 31 | |||
| Determine the standard deviation of the expected return. (Round your answer to 2 decimal places.) |
| Standard deviation | % |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
