Question: Problem 11-6 Calculating Returns and Standard Deviations You have been given the following information: State of Economy Depression Recession Normal Boom Probability of State
Problem 11-6 Calculating Returns and Standard Deviations You have been given the following information: State of Economy Depression Recession Normal Boom Probability of State of Economy .13 .22 .47 .18 Rate of Return if State Occurs -.108 .056 .127 .208 Calculate the expected return and standard deviation. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % Standard deviation %
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
