5 eBook Based on the following information: State of Economy Depression Recession Normal Boom Probability of State of Economy 0.13 0.22 0.47 0.18 Rate of Return if State Occurs -0.108 0.056 0.127 0.208 Calculate the expected return. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return Calculate the standard deviation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Standard deviation 5.58%
5 eBook Based on the following information: State of Economy Depression Recession Normal Boom Probability of State of Economy 0.13 0.22 0.47 0.18 Rate of Return if State Occurs -0.108 0.056 0.127 0.208 Calculate the expected return. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return Calculate the standard deviation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Standard deviation 5.58%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![LO
5
Book
Ms
Based on the following information:
State of Economy
Depression
Recession
Normal
Boom
Probability of State
of Economy
0.13
0.22
0.47
0.18
You received partial credit in the previous attempt.
Rate of Return
if State Occurs
-0.108
0.056
0.127
0.208
Calculate the expected return. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Expected return
9.54%
Calculate the standard deviation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Standard deviation
5.58%
m](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3cf3ae6d-d7b4-42e2-85b1-b2bfd1101713%2Fc090a6ce-a227-42a5-8616-6c973ac3e9f2%2F6wsyoym_processed.png&w=3840&q=75)
Transcribed Image Text:LO
5
Book
Ms
Based on the following information:
State of Economy
Depression
Recession
Normal
Boom
Probability of State
of Economy
0.13
0.22
0.47
0.18
You received partial credit in the previous attempt.
Rate of Return
if State Occurs
-0.108
0.056
0.127
0.208
Calculate the expected return. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Expected return
9.54%
Calculate the standard deviation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Standard deviation
5.58%
m
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