You may attempt this question 3 more times for cre Financial analysts have estimated the returns on shares of the Woods Corporation and the overall market portfolio under two economic states natur dependent returns are -0.02 in recession, and 0.06 in an economic boom. For the market the state dependent returns are -0.02 in recession, and 0.12 in boom. The analyst estimates that the probability of a recession is 0.50 while the probability of an economic boom is 0.50. Compute the standard deviation of the market. * State your answer in decimal form, working your analysis using at least four decimal places of accuracy. CHECK ANSWER
You may attempt this question 3 more times for cre Financial analysts have estimated the returns on shares of the Woods Corporation and the overall market portfolio under two economic states natur dependent returns are -0.02 in recession, and 0.06 in an economic boom. For the market the state dependent returns are -0.02 in recession, and 0.12 in boom. The analyst estimates that the probability of a recession is 0.50 while the probability of an economic boom is 0.50. Compute the standard deviation of the market. * State your answer in decimal form, working your analysis using at least four decimal places of accuracy. CHECK 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
Section: Chapter Questions
Problem 1PS
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A 28.
Subject:- finance
Transcribed Image Text:You may attempt this question 3 more times for credit.
Financial analysts have estimated the returns on shares of the Woods Corporation and the overall market portfolio under two economic states nature as follows. For Woods the state
dependent returns are -0.02 in recession, and 0.06 in an economic boom. For the market the state dependent returns are -0.02 in recession, and 0.12 in boom. The analyst estimates that
the probability of a recession is 0.50 while the probability of an economic boom is 0.50.
Compute the standard deviation of the market.
* State your answer in decimal form, working your analysis using at least four decimal places of accuracy.
CHECK ANSWER
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