Janette Is Considering an Investment in Parson Inc A)1746%
B)22

question 40

Multiple Choice

Janette is considering an investment in Parson Inc.and has gathered the information in the following table.What is the expected standard deviation for a share of the firm's stock? $$\begin{array} { | l | c | c | } \hline \begin{array} { c } \text { State of the } \\\text { Economy }\end{array} & \begin{array} { c } \text { Probability of the } \\\text { State }\end{array} & \begin{array} { c } \text { Conditional Expected Return } \\\text { Parson Inc. }\end{array} \\\hline \text { Recession } & .25 & - 20 \% \\\hline \text { Steady } & .60 & 10 \% \\\hline \text { Boom } & .15 & 35 \\\hline\end{array}$$

• A)17.46%
• B)22.48
• C)27.54%
• D)31.62%

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Definitions:

Privacy

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