Problem 11-14 Risk and Expected Return (LO2) A stock will provide a rate of return of either -28% or 33%. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. (Do not round intermediate calculations. Enter your answers as a whole percent.)
Problem 11-14 Risk and Expected Return (LO2) A stock will provide a rate of return of either -28% or 33%. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. (Do not round intermediate calculations. Enter your answers as a whole percent.)
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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Transcribed Image Text:Problem 11-14 Risk and Expected
Return (LO2)
A stock will provide a rate of
return of either -28% or 33%.
If both possibilities are equally
likely, calculate the stock's
expected return and standard
deviation. (Do not round
intermediate calculations. Enter
your answers as a whole percent.)
Expected return
Standard
deviation
%
%
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