Question 4 Consider the following information on two stocks: Stock A Stock B P(State) 10% 25% -5% 15% -5% 25% 10% 5% Boom Growth 20% Normal 30% 20% 20% Slow Bust 10% 8% -5% Calculate the standard deviation of stock B. (Enter percentages as decimals and round to 4 decimals)
Question 4 Consider the following information on two stocks: Stock A Stock B P(State) 10% 25% -5% 15% -5% 25% 10% 5% Boom Growth 20% Normal 30% 20% 20% Slow Bust 10% 8% -5% Calculate the standard deviation of stock B. (Enter percentages as decimals and round to 4 decimals)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 4DQ: Select one of the four stocks listed in Question 3 by entering the companys ticker symbol on the...
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![Question 4
Consider the following information on two stocks:
Stock A
Stock B
P(State)
10%
25%
-5%
15%
-5%
10%
25%
8%
10%
-5%
5%
Boom
Growth 20%
Normal 30%
20%
20%
Slow
Bust
Calculate the standard deviation of stock B. (Enter percentages as decimals and round to 4 decimals)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9bd762e6-8e36-40a8-a6af-2ae998fa106b%2Fdb3ba2d6-6c83-4dc1-95c2-4917728e91ff%2Faxrqiz8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 4
Consider the following information on two stocks:
Stock A
Stock B
P(State)
10%
25%
-5%
15%
-5%
10%
25%
8%
10%
-5%
5%
Boom
Growth 20%
Normal 30%
20%
20%
Slow
Bust
Calculate the standard deviation of stock B. (Enter percentages as decimals and round to 4 decimals)
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