Determine the standard deviation of the expected return


Following are three economic states, their livelihoods, and potential returns:

economic states.    probability return

fast growth.                  0.22.          38%

slow growth.                 0.49.            6

recession.                      0.29.          -26

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determine the standard deviation of the expected return standard deviation ()%

A manager believes his firm will earn a 14.90 percent return next year. just firm has a beta of 1.43, the expected return on the market is 11.40 percent, and the risk-free rate is 4.40 percent. compute the return the firm should earn given its level of risk

required return()%

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Financial Management: Determine the standard deviation of the expected return
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