You are evaluating the risk of one stock. It is expected to earn 19% return next year if the economy is normal; and earn
Posted: Tue Jan 18, 2022 12:59 pm
You are evaluating the risk of one stock. It is expected to earn
19% return next year if the economy is normal; and earns a netative
10% if the economy falls into a recession. The probability of a
normal economy is 89%. What is the standard deviation of the
returns on this stock?
19% return next year if the economy is normal; and earns a netative
10% if the economy falls into a recession. The probability of a
normal economy is 89%. What is the standard deviation of the
returns on this stock?