Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you are analyzing abc stock and predicting the pro

You are analyzing ABC stock and predicting the probabilities for different economic conditions next years...

90.2K

Verified Solution

Question

Finance

You are analyzing ABC stock and predicting the probabilities for different economic conditions next years and the corresponding return information as follows.

Economic Condition Probability for Economic Condition ABC stock returns (HPR)
Boom 0.20 0.15
Normal 0.30 0.05
Recession 0.50 -0.08

What is the standard deviation for this ABC stock investment?

*Hint: You should find E(R) first and calculate standard deviation accordingly.

Please round your answer to the fourth decimal. For example, 0.1234.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

Describe the central nervous system and its anatomical and physiological components i.e. neurons, glial cells, etc....

Biology
1.2K views

Which of the followingis true regardingdiffusion rates incells?A. A larger volume-to-surfacearea ratio increases diffusionrate.B. Projections,...

Physics
1.2K views

180 Figure shows a circuit with three ideal batteries in it The circuit elements have...

Basic Math
1.2K views

Given the function g(x) y, which of the following statements is true?g(x) is the name...

Algebra
1.2K views

Find the y intercept 2x 1 x 7 x 3 x 4 y 123 Enter...

Accounting
1.2K views

Your parents' small business purchases undeveloped land for $150,000 and, after a few years, forgets...

Accounting
1.2K views

Colt Company owns a machine that can produce two specialized products Production time for Product...

Finance
1.2K views

Omni Advisors, an international pension fund manager, uses the concepts of purchasing power parity (PPP)...

Accounting
1.2K views

Required information (The following information applies to the questions displayed below) Diego Company manufactures one...

Accounting
1.2K views

Employment income$35,000Interest income5,000Taxable amount of dividend income7,000Taxable capital gain5,000Allowable capital loss12,000Subdivision E deductions2,000 Minjie...

Accounting
1.2K views

Magic Realm. Incorporated, has developed a new fantasy board game. The company sold 16,000 games...

Finance
1.2K views

The market value balance sheet for Briggs Manufacturing is shown here. The company has declared...