Calculate the expected standard deviation on stock: State of the economy Probability of the states Percentage...

Calculate the expected standard deviation on stock:

State of the economy	Probability of the states	Percentage returns
Economic recession	11%	-8%
Steady economic growth	28%	10%
Boom	Please calculate it	11%

Solutions

Expert Solution

Variance and Standard Deviation are calculated as in the case of a discrete probability distribution, rounding off to four decimals.

The Standard Deviation is 7.2687 Step-by step details of the calculation with the formula applied are given below, as image.

jeff jeffy answered 2 months ago

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