Question

For the class "Time Series Modeling"

Stock B: 6% return with prob. 0.7; -8% return with prob. 0.3: Mean=1.8%, std=6.42 3

Stock C: 45.42% return with prob. 0.7; -100% return with prob. 0.3: Mean=1.8%, std=66.64

- Calculate the mean values and the standard deviations of the Stock return-Stock B & Stock C.

Can you please show all the work so I can learn how to do it myself, thanks!

Answer 1