Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The stock of Tristar Bank will have a loss of 10.8 percent in a slow economy, a return of 10.6 percent in a normal economy, and a return of 24.5 percent in a fast-growing economy. There is 30 percent probability of a slow economy, 39 percent probability of a normal economy, and 31 percent probability of a fast-growing economy. What is the variance of the stock's returns?
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