Standard deviation of the expected return standard deviation

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Reference no: EM131911910

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

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()%

Reference no: EM131911910

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