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state of economy probability return on stock J return on stock K bear 0.23 -0.013 0.041 normal 0.58 0.145 0.069 bull 0.19 0.225 0.099 Calculate the standard deviation for each of...

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Finance

state of economyprobabilityreturn on stock Jreturn on stock K
bear0.23-0.0130.041
normal0.580.1450.069
bull0.190.2250.099

Calculate the standard deviation for each of the stocks

Stock J    %

Stock K     %

Answer & Explanation Solved by verified expert
4.4 Ratings (819 Votes)
Standard Deviation for Stock J Expected Return Expected Return SumReturns x Probability 130 x 023 1450 x 058 2250 x 019 030 841 428 1239 Variance of the returns Variance of    See Answer
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