Suppose a stock has generated the following annual returns: 13.2%, -11.4% and 7.2%. What was the standard deviation of its returns? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32).

There is a 20% chance of an economic boom and a 15% chance of a recession in the next year. Otherwise, the economy is expected to stay normal. You forecast that McDonald's stock will go up 21.1% if the economy is booming, 7.4% if the economy is normal, and go down 9.5 if there is a recession. What is McDonald's expected return under these scenarios? Answer in percent, rounded to one decimal place.

Answer rating: 100% (QA)

To calculate the standard deviation of stock returns we first need to find the average retu... View the full answer