The expected possible outcomes for Roxy Stock are below;
Required:
Question: What is the expected standard deviation of Roxy Stock? Note: Please show how you came up with the solution.
| State |
Probabilty |
Return |
| Super Boom |
10% |
35% |
| Boom |
15% |
20% |
| Expansion |
45% |
15% |
| Recession |
30% |
-5% |