5 eBook Based on the following information: State of Economy Depression Recession Normal Boom Probability of State of Economy 0.13 0.22 0.47 0.18 Rate of Return if State Occurs -0.108 0.056 0.127 0.208 Calculate the expected return. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return Calculate the standard deviation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Standard deviation 5.58%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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LO
5
Book
Ms
Based on the following information:
State of Economy
Depression
Recession
Normal
Boom
Probability of State
of Economy
0.13
0.22
0.47
0.18
You received partial credit in the previous attempt.
Rate of Return
if State Occurs
-0.108
0.056
0.127
0.208
Calculate the expected return. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Expected return
9.54%
Calculate the standard deviation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Standard deviation
5.58%
m
Transcribed Image Text:LO 5 Book Ms Based on the following information: State of Economy Depression Recession Normal Boom Probability of State of Economy 0.13 0.22 0.47 0.18 You received partial credit in the previous attempt. Rate of Return if State Occurs -0.108 0.056 0.127 0.208 Calculate the expected return. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return 9.54% Calculate the standard deviation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Standard deviation 5.58% m
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