Posted by **Margaret** on Tuesday, June 4, 2013 at 11:58am.

Calculate the return and standard deviation for the following stock, in an economy with five possible states. If a Boom (Probability=25%) economy occurs, then the expected return is 30%. If a Good (Probability=25%) economy occurs, then the expected return is 15%. If a Normal (Probability=20%) economy occurs, then the expected return is 8%. If a Bad (Probability=20%) economy occurs, then the expected return is 5%. If a Recession (Probability=10%) economy occurs, then the expected return is -15%. Show your work for partial credit.

- Finance -
**b**, Tuesday, February 17, 2015 at 8:46pm
234

- Finance -
**YA**, Wednesday, March 2, 2016 at 11:00pm
Calculate the return and standard deviation for the following stock, in an economy with five possible states. If a Boom (Probability=25%) economy occurs, then the expected return is 30%. If a Good (Probability=25%) economy occurs, then the expected return is 15%. If a Normal (Probability=20%) economy occurs, then the expected return is 8%. If a Bad (Probability=20%) economy occurs, then the expected return is 5%. If a Recession (Probability=10%) economy occurs, then the expected return is -15%. Show your work for partial credit.

- Finance -
**bob**, Saturday, September 24, 2016 at 11:46am
1.35

## Answer This Question

## Related Questions

- Statistics/probability - You are considering two mutual funds for your ...
- Math - You are considering two mutual funds for your investment. The possible ...
- math - It is equally probable that stock A will have a +10% or -10% rate of ...
- BUSINESS MATH - : The Crescent Corporation just paid a dividend of $2 per share ...
- BUSINESS MATH - Part B: The Crescent Corporation just paid a dividend of $2 per ...
- Statistics - According to a recent survey, 75% of all customers will return to ...
- finance - The expected return on the market is 12% and the risk free rate is 7...
- Finance - If you invest 30% of your funds in Lucent stock, with an expected rate...
- finance - Austin Electronics expects sales next year to be at $900,000 if the ...
- finance - Austin Electronics expects sales next year to be at $900,000 if the ...

More Related Questions