What was the average realized return on Sunny Co.'s stock from 2011 to 2015T 10.4096...
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What was the average realized return on Sunny Co.'s stock from 2011 to 2015T 10.4096 Based on economic conditions, you compiled the following information with estimates of returns from Sunny Co.'s stock and the probabilities associated with the economic condition for the next year: Market Condition Probability (P1) Sunny Co. (Rn) Boom Normal Recession 0.50 0.25 0.25 18% 1196 -14% Using this information, calculate the standard deviation of returns from Sunny Co.'s stock. 24.45% 3.63% O 13.16% O 173.19% use the historical standard deviation to calculate estimates of the future Analysts and finance professionals often variability. An important disclaimer in their analysis, however, always states that past performance is not a gu of future results. Thus, it is important to understand that the average realized rate of return (R) should not be used as the expected rate of return (R)
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