Question
calculate the standard deviation of the returns
4. Stock A has the following returns for various states of the economy State of the Economy Recession Below Average Average A
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Expected Return = (0.09(-0.72) + 0.16(-0.15) + 0.51(0.16) + 0.14(0.35) + 0.10(0.85))

Expected Return = 0.1268

Standard Deviation = [0.09(-0.72 -0.1268)2 + 0.16(-0.15 - 0.1268)2 + 0.51(0.16 -0.1268)2 + 0.14(0.35 - 0.1268)2 + 0.1(0.85 - 0.1268)2]1/2

Standard Deviation = 36.96%

Add a comment
Know the answer?
Add Answer to:
calculate the standard deviation of the returns 4. Stock A has the following returns for various...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT