Question: Problem 11-6 Calculating Returns and Standard Deviations You have been given the following information: State of Economy Probability of State of Economy Rate of Return
Problem 11-6 Calculating Returns and Standard Deviations
| You have been given the following information: |
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs |
|---|---|---|
| Depression | .15 | .184 |
| Recession | .30 | .029 |
| Normal | .45 | .173 |
| Boom | .10 | .372 |
| 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: ANSWER%
Standard Deviation: ANSWER%
Find the expected return and standard deviation.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
