Stock A pays 30% in a boom, 5% in a normal economy and -30% in a recession. If we are equally likely to see a boom, a normal economy and a recession next year, what is the standard deviation of the one-year return on stock A? Enter your result as a percentage point without the % sign, and round it to the second decimal point (i.e., if the answer is 10.3456%, enter it as 10.35).
Detailed solution is provided.
Get Answers For Free
Most questions answered within 1 hours.