In: Finance
You have been assigned to examine the following funds with their respective probabilities:
Stock Fund X |
Stock Fund Y |
||
Scenario |
Probability |
Rate of Return (%) |
Rate of Return (%) |
Severe recession |
0.05 |
-5 |
11.2 |
Mild recession |
0.15 |
-1.6 |
3.3 |
Normal growth |
0.55 |
7.7 |
0.5 |
Boom |
0.25 |
16.3 |
-4.1 |
What is the standard deviation of the stock fund X?
Remember to state your answer as a percentage. For example, 99.99%.