Question: Will give u a like/ thumbs up for sure! Thank you so much! Friendly request and reminder:- pls answer all parts as I don't want

Will give u a like/ thumbs up for sure! Thank you so much!

Friendly request and reminder:- pls answer all parts as I don't want to waste the uploaded question. If u can't or don't want to answer all parts - pls don't answer {which further results in a dislike and bad comment :( }

Question -

L)

1. Assume a stock has an expected rate of return of 12% and a variance of 0.00196. What is the standard deviation for this stock?

K)

2. The rates of return for a stock are as follows: 2% if the state of the economy is recession, 8% if the state of the economy is normal, and 11% if the state of the economy is expansion. The probability for each state of the economy is 25%, 45%, and 30%, respectively. Assume the stock has an expected rate of return of 7.4%. What is the variance for this stock?

J)

3. The rates of return for a stock are as follows: 4% if the state of the economy is recession; 8% if the state of the economy is normal; and 11% if the state of the economy is expansion. The probability for each state of the economy is 22%, 42%, and 36%, respectively. What is this stock's expected return?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!