A stock will have a loss of 10.3 percent in a bad economy, a return of 10.1 percent in a normal economy, and a return of 24 percent in a hot economy. There is 25 percent probability of a bad economy, 44 percent probability of a normal economy, and 31 percent probability of a hot economy. What is the variance of the stock's returns? Multiple Choice .02450 .03266 .12779 .01633 .01225
A stock will have a loss of 10.3 percent in a bad economy, a return of 10.1 percent in a normal economy, and a return of 24 percent in a hot economy. There is 25 percent probability of a bad economy, 44 percent probability of a normal economy, and 31 percent probability of a hot economy. What is the variance of the stock's returns? Multiple Choice .02450 .03266 .12779 .01633 .01225
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter17: Making Decisions With Uncertainty
Section: Chapter Questions
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A stock will have a loss of 10.3 percent in a bad economy, a return of 10.1 percent in a normal economy, and a return of 24 percent in a hot economy. There is 25 percent probability of a bad economy, 44 percent probability of a normal economy, and 31 percent probability of a hot economy. What is the variance of the stock's returns?
Multiple Choice
-
.02450
-
.03266
-
.12779
-
.01633
-
.01225
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