The standard deviation for the return on an individual firm is closest to ________
Consider an economy with two types of firms, S and I. S firms always move together, but I firms move independently of each other. For both types of firms there is a 40% probability that the firm will have a 20% return and a 60% probability that the firm will have a -30% return.
A) 24.49%
B) -10.00%
C) 12.25%
D) 9.80%
Answer: A
Business
You might also like to view...
When recognizing deferred tax assets and liabilities, the income statement approach and the balance sheet approach yield identical results
a. when enacted tax rates applicable to future periods do not change. b. when the firm recognizes no valuation allowance on deferred tax assets. c. Both (a) and (b) are correct. d. None of these answers is correct.
Business
How are bonds measured at issuance?
Business