Question: You have the below information about the expected returns of Palantir Technologies and Valar Ventures for the coming year, which both heavily depend on the
You have the below information about the expected returns of Palantir Technologies and Valar Ventures for the coming year, which both heavily depend on the state of the economy:
| Economic State | Probability | Palantir Technologies | Valar Ventures |
|---|---|---|---|
| Boom | 0.150.15 | 22.0022.00% | 37.0037.00% |
| Normal | 0.530.53 | 9.009.00% | 15.0015.00% |
| Recession | 0.320.32 | 1.001.00% | 4.004.00% |
A) What is the expected return of Palantir Technologies in the coming year? % (Round to two decimal places)
B) What is the expected return of Valar Ventures in the coming year? % (Round to two decimal places)
C) What is the expected standard deviation of Palantir Technologies' return in the coming year? % (Round to two decimal places)
D) What is the expected standard deviation of Valar Ventures' return in the coming year? % (Round to two decimal places)
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