A stock will provide a rate of return of either -20% or 30%. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. Note: Do not round intermediate calculations. Enter your answers as a whole percent. Expected retum 7 Standard deviation % %
A stock will provide a rate of return of either -20% or 30%. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. Note: Do not round intermediate calculations. Enter your answers as a whole percent. Expected retum 7 Standard deviation % %
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
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![A stock will provide a rate of return of either -20% or 30%.
If both possibilities are equally likely, calculate the stock's expected return and standard deviation.
Note: Do not round intermediate calculations. Enter your answers as a whole percent.
Expected retum
7
Standard deviation
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdaa3189f-d434-4e72-9636-69344f776b7e%2F5bae616a-6214-40fc-9b7d-47e5ca90e1c4%2Fz7kbsfe_processed.png&w=3840&q=75)
Transcribed Image Text:A stock will provide a rate of return of either -20% or 30%.
If both possibilities are equally likely, calculate the stock's expected return and standard deviation.
Note: Do not round intermediate calculations. Enter your answers as a whole percent.
Expected retum
7
Standard deviation
%
%
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