Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Using the table of returns and probabilities below, find

Probability Return
Boom 0.4 25.00%
Good 0.3 15.00%
Level 0.1 10.00%
Slump 0.2
-5.00%

a) What is hte expected return on Barbara's investment? (Round answer to 3 decimal places, e. g. 0.076)

b) What is the standard deviation of the return on Barbara's investment? (Round answer to 5 decimal places, e. g. 0.07680)

Which of the following statements is not correct? the stock of publicly owned companies must generally be registered with and reported to a regulatory agency such as the sec. when stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public, or an ipo," and the market for such stock is called the new issue or ipo market. "going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares. if you wanted to know what rate of return stocks have provided in the past, you could examine data on the dow jones industrial index, the s& p 500 index, or the nasdaq index.