Laura is considering investing in a company's stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment.
Probability Return
Boom 0.3 25.00%
Good 0.1 15.00%
Level 0.3 10.00%
Slump 0.3 - 5.00%
Incorrect answer. Your answer is incorrect. Try again.
Use the table of returns and probabilities above to determine the expected return on Laura's investment? (Round answer to 3 decimal places, e. g. 0.076.)
Expected return Entry field with incorrect answer
Incorrect answer. Your answer is incorrect. Try again.
Use the table of returns and probabilities above to determine the standard deviation of the return on Laura's investment? (Round answer to 5 decimal places, e. g. 0.07680.)
Standard deviation Entry field with incorrect answer
+3
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Laura is considering investing in a company's stock and is aware that the return on that investment is particularly sensitive to how the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Home » Business » Laura is considering investing in a company's stock and is aware that the return on that investment is particularly sensitive to how the economy is performing.