Andre is considering an investment in Bristol Inc

Finance Aug 12, 2020

Andre is considering an investment in Bristol Inc. and has gathered the following information. What is the expected standard deviation for a share of the firm's stocka Conditional Expected State of the Probability of the Return Economy State Bristol Inc. Recession - 10% 40 .20 10% Steady Boom 40 45% Select one: O a. 22.14% Ob. 24.78% O c. 23.99% O d. 20.13

Expert Solution

=sqrt(0.40*(-10%-(0.40*(-10%)+0.20*10%+0.40*45%))^2+0.20*(10%-(0.40*(-10%)+0.20*10%+0.40*45%))^2+0.40*(45%-(0.40*(-10%)+0.20*10%+0.40*45%))^2)
=24.7790%

Option B

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