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A stock will provide a rate of return of either â22 or 33 a If both possibilities are equally likely calculate the expected return and standard deviation Do not round intermediate

A stock will provide a rate of return of either −22% or +33%.

a. If both possibilities are equally likely, calculate the expected return and standard deviation. (Do not round intermediate calculations. Round your answers to 1 decimal place.)

Expected return 5.5 %

Standard deviation %

b. If Treasury bills yield 5.5% and investors believe that the stock offers a satisfactory expected return, what must the market risk of the stock be?

Market risk %

 

Sep 08 2020 Read more Less More

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