Question: You have been given this probability distribution for the return for a stock: State of the Economy Probability Return Boom 0.40 20% Recession 0.60 -10%
You have been given this probability distribution for the return for a stock: State of the Economy Probability Return Boom 0.40 20% Recession 0.60 -10% What is the standard deviation of the stock? (For your convenience. I calculated the expected return of the stock: E() -2%.) 14.70% 8.61% 12.17% 10.94%
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