You anticipate a booming economy next year with a 20% probability. Otherwise, you expect the economy to
Fantastic news! We've Found the answer you've been seeking!
Question:
You anticipate a booming economy next year with a 20% probability. Otherwise, you expect the economy to be normal. You forecast that a stock will earn a 30% annual return in the event of a boom and 10% otherwise. What's the standard deviation of returns?
Related Book For
Intermediate Financial Management
ISBN: 978-1111530266
11th edition
Authors: Eugene F. Brigham, Phillip R. Daves
Posted Date: