Fin 357 – The Returns On The Common Stock Of Maynard Cosmetic Specialties

The returns on the common stock of Maynard Cosmetic Specialties are quite cyclical. In a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. The probability of a recession is 35 percent while the probability of a boom is 10 percent. What is the standard deviation of the returns on this stock?10. 67 percent12. 51 percent15. 88 percent19. 94 percent22. 86 percent

Order Now

Fin 357 – The Returns On The Common Stock Of Maynard Cosmetic Specialties

The returns on the common stock of Maynard Cosmetic Specialties are quite cyclical. In a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. The probability of a recession is 35 percent while the probability of a boom is 10 percent. What is the standard deviation of the returns on this stock?10. 67 percent12. 51 percent15. 88 percent19. 94 percent22. 86 percent

Order Now