Transcribed Image Text
A stock will provide a rate of return of either ?32% or35%.a.If both possibilities are equally likely, calculate the stock'sexpected return and standard deviation. (Do not roundintermediate calculations. Enter your answers as a percent roundedto 1 decimal place.) Expected return% Standard deviation%b.If Treasury bills yield 1.5% and investors believe that thestock offers a satisfactory expected return, what must the marketrisk of the stock be? (Enter your answer as a wholepercent.) Market risk%
Other questions asked by students
Basic Math
Biology
Basic Math
Accounting
Accounting
Accounting
Accounting