Consider the following returns and states of the economy for Neptune Corporation: Economy ProbabilityReturn Weak 40% 2% Normal 50% 13% Strong 10% 32% What is the standard deviation of the firm's returns? SET YOUR CALCULATOR TO FOUR DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE %. FOR EXAMPLE, IF YOUR ANSWER IS 7.7011% ENTER IT AS 7.70.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 16PROB
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Consider the following returns and states of the economy for Neptune Corporation:
Economy ProbabilityReturn
Weak
40%
2%
Normal 50%
13%
Strong 10%
32%
What is the standard deviation of the firm's returns? SET YOUR CALCULATOR TO FOUR
DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE
%. FOR EXAMPLE, IF YOUR ANSWER IS 7.7011% ENTER IT AS 7.70.
Transcribed Image Text:Consider the following returns and states of the economy for Neptune Corporation: Economy ProbabilityReturn Weak 40% 2% Normal 50% 13% Strong 10% 32% What is the standard deviation of the firm's returns? SET YOUR CALCULATOR TO FOUR DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE %. FOR EXAMPLE, IF YOUR ANSWER IS 7.7011% ENTER IT AS 7.70.
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