lexybellx3
lexybellx3
28.04.2021 • 
Business

As in the previous problem, the returns on the common stock of Gridiron Sporting Goods are quite cyclical. In a normal economy, the stock is expected to return 16 percent in comparison to 28 percent in a boom economy and a negative 20 percent in a recessionary period. The probability of a recession is 30 percent while the probability of a boom is 20 percent.. What is the standard deviation of the returns on this stock

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