You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return Strong 0.15 18 % Normal 0.45 9 % Weak 0.40 -4 % What is the stock's standard deviation? Do not round intermediate calculations. Round your answer to two decimal places.
You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return Strong 0.15 18 % Normal 0.45 9 % Weak 0.40 -4 % What is the stock's standard deviation? Do not round intermediate calculations. Round your answer to two decimal places.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 1P: The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market...
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Quantitative Problem: You are given the following probability distribution for CHC Enterprises:
State of Economy | Probability | ||
Strong | 0.15 | 18 | % |
Normal | 0.45 | 9 | % |
Weak | 0.40 | -4 | % |
What is the stock's standard deviation? Do not round intermediate calculations. Round your answer to two decimal places.
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