Consider the following information: State Probability i of State i Actual Return of Johnson and Johnson Boom 78 % 21 % Bust 22% 1% What is the variance of Johnson and Johnson? (Round to 6 decimals) (Remember Variance is not in percentage terms!) Answer:

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
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Consider the following information:
State
Probability
i
of State i
Actual
Return
of
Johnson
and
Johnson
Boom
78 %
21 %
Bust
22%
1%
What is the variance of Johnson and Johnson? (Round
to 6 decimals) (Remember Variance is not in
percentage terms!)
Answer:
Transcribed Image Text:Consider the following information: State Probability i of State i Actual Return of Johnson and Johnson Boom 78 % 21 % Bust 22% 1% What is the variance of Johnson and Johnson? (Round to 6 decimals) (Remember Variance is not in percentage terms!) Answer:
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