An investor purchases a share of Synovous Bank stock this morning for $2.80. The investor believes the economy will take one of three conditions in the coming year, and each condition will have an impact on the selling price of the stock. The investor's beliefs about the economy are shown below: OUTCOME: Probability Bad for Banks Moderate for Banks Good for Banks 0.37 0.38 0.25 Synovous Price in One Year $2.60 $2.96 $3.46 What is the standard deviation for Synovous returns (based on the investor's returns)? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)

An investor purchases a share of Synovous Bank stock this morning for $2.80. The investor believes the economy will take one of three conditions in the coming year, and each condition will have an impact on the selling price of the stock. The investor's beliefs about the economy are shown below: OUTCOME: Probability Bad for Banks Moderate for Banks Good for Banks 0.37 0.38 0.25 Synovous Price in One Year $2.60 $2.96 $3.46 What is the standard deviation for Synovous returns (based on the investor's returns)? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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