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You best guesses for a stock in different states of the economy are as follows: Probability Expected return State (s) Recession -2.7% Normal 11.5% Boom 15.6% 15% 50% 35% Answer(s): What is the expected return for the stock? What is the standard deviation of returns for the stock? 8.1% You best guesses for a stock in different states of the economy are as follows: Probability Expected return State (s) Recession -2.7% Normal 11.5% Boom 15.6% 15% 50% 35% Answer(s): What is the expected return for the stock? What is the standard deviation of returns for the stock? 8.1% You best guesses for a stock in different states of the economy are as follows: Probability Expected return State (s) Recession -2.7% Normal 11.5% Boom 15.6% 15% 50% 35% Answer(s): What is the expected return for the stock? What is the standard deviation of returns for the stock? 8.1%
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