Ask Question
6 November, 14:25

Based on the following information, what is the standard deviation of returns? State of Economy Probability of State of Economy Rate of Return if State Occurs Recession. 22 -.112 Normal. 25.127 Boom. 53.237

+2
Answers (1)
  1. 6 November, 16:10
    0
    Step-by-step explanation:

    Mean = 0.53*23.7% + 0.25*12.7% + 0.22 * (-0.112) = 15.71%

    standard deviation = sqrt (0.53 * (23.7%-15.71%) ^2 + 0.25 * (12.7%-15.71%) ^2 + 0.22 * (-0.112-12.40%) ^2) = 8.40%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Based on the following information, what is the standard deviation of returns? State of Economy Probability of State of Economy Rate of ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers