Blue Bell Stock Is Expected to Return 8

question 54

Multiple Choice

Blue Bell stock is expected to return 8.4 percent in a boom, 8.9 percent in a normal economy, and 9.2 percent in a recession.The probabilities of a boom, normal economy, and a recession are 6 percent, 92 percent, and 2 percent, respectively.What is the standard deviation of the returns on this stock?

• A).38 percent
• B).55 percent
• C).13 percent
• D).42 percent
• E).06 percent

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Definitions:

Primary Research

The process of gathering new data directly through surveys, interviews, or experiments.

Collecting Data

The process of gathering and measuring information on variables of interest in an systematic fashion.

Expensive

Describes an item or service that has a high cost relative to its value or compared to similar items or services.

Netnography

A qualitative research methodology that studies cultures and communities through their online interactions and digital communications.