You have been given the following information: State of Economy Probability of State Rate of Return if Depression Recession Normal Boom of Economy 14 .21 .48 .17 State Occurs -109 .055 .126 .207 Calculate the expected return and standard deviation. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % Standard deviation %
You have been given the following information: State of Economy Probability of State Rate of Return if Depression Recession Normal Boom of Economy 14 .21 .48 .17 State Occurs -109 .055 .126 .207 Calculate the expected return and standard deviation. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % 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
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Transcribed Image Text:You have been given the following information:
Probability of State Rate of Return if
State of
Economy
of Economy
Depression
.14
Recession
.21
Normal
.48
Boom
.17
State Occurs
-.109
.055
.126
.207
Calculate the expected return and standard deviation. (Do not round intermediate
calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,
32.16.)
Expected return
%
Standard deviation
%
5
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