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Author Question: Your firms analyst believes that economic conditions during the next year will be either strong, ... (Read 74 times)

sbegs

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Your firm’s analyst believes that economic conditions during the next year will be either strong, normal, or weak, and they think that Crary Inc.’s returns will have the probability distribution shown below. What’s the standard deviation of Crary’s returns as estimated by your analyst? (Hint: Use the formula for the standard deviation of a population, not a sample.)

Economic

  

Conditions

Prob.

Return

Strong

25%

34.1%

Normal

55%

12%

Weak

20%

–16.3%

   

16.80%


17.15%


17.60%


17.92%



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Marked as best answer by sbegs on Aug 7, 2023

Kevin5!

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sbegs

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Reply 2 on: Aug 7, 2023
Excellent


cassie_ragen

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Reply 3 on: Yesterday
Wow, this really help

 

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