You are conducting the research on the stock of Business Adventures and obtain the following information about the status of the economy and corresponding probabilities and the holding period returns for different economic conditions:
Probability | HPR | |
Boom | 20% | 30% |
Normal | 50% | 10% |
Recession | 30% | -13.75% |
Calculate the expected return and standard deviation of the holding period return.
Expected return= (round your answer to the fourth decimal. e.g. if your answer is 1.11%, you should input 0.0111)
Standard deviation= (round your answer to the fourth decimal. e.g. if your answer is 1.11%, you should input 0.0111)
All formulas and solutions are in excel itself
You are conducting the research on the stock of Business Adventures and obtain the following information...
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