Calculate the standard deviation of ibm and att, Financial Accounting

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Question:

State of the Economy

Probability of state occurring

IBM Return (%)

ATT Return (%)

 

 

 

 

Boom

.2

60

20

Normal

.5

10

10

Recession

.3

-10

0

a. Calculate the Expected Return of IBM and ATT.

b. Calculate the Variance of IBM and ATT.

c. Calculate the Standard Deviation of IBM and ATT.


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