Quiz Submissions - Homework
#5D (Expected return and
Standard deviation on stock using
probabilities)
FINC 330 6380 Business Finance
Question 1
Calculate the expected return on stock of Gamma Inc.:
Probability of the Percentage
State of the economy
states returns
Economic recession 11% 7.5%
Steady economic growth 32% 5.8%
Boom Please calculate it 9.8%
Round the answers to two decimal places in percentage form. (Write the
percentage sign in the "units" box)
Answer:
6.62 %
-7.5%*.11+5.8%*.32+9.8%*.57
Question 2
Calculate the expected standard deviation on stock:
State of the economy Probability of the Percentage returns
This study source was downloaded by 100000872281541 from CourseHero.com on 09-28-2023 09:05:27 GMT -05:00
https://www.coursehero.com/file/29582210/Homework-5D-Expected-return-and-Standard-deviation-on-stock-using-probabilitiesdocx/
#5D (Expected return and
Standard deviation on stock using
probabilities)
FINC 330 6380 Business Finance
Question 1
Calculate the expected return on stock of Gamma Inc.:
Probability of the Percentage
State of the economy
states returns
Economic recession 11% 7.5%
Steady economic growth 32% 5.8%
Boom Please calculate it 9.8%
Round the answers to two decimal places in percentage form. (Write the
percentage sign in the "units" box)
Answer:
6.62 %
-7.5%*.11+5.8%*.32+9.8%*.57
Question 2
Calculate the expected standard deviation on stock:
State of the economy Probability of the Percentage returns
This study source was downloaded by 100000872281541 from CourseHero.com on 09-28-2023 09:05:27 GMT -05:00
https://www.coursehero.com/file/29582210/Homework-5D-Expected-return-and-Standard-deviation-on-stock-using-probabilitiesdocx/
