You have the below information about the expected returns of Palantir Technologies and Valar Ventures for the coming year, which both heavily depend on the state of the economy: Economic State Probability Palantir Technologies Valar Ventures Boom 0.10 21.00% 39.00% Normal 0.55 12.00% 17.00% Recession 0.35 0.00% -8.00% A) What is the expected return of Palantir Technologies in the coming year? (Round your answer to two decimal places) B) What is the expected return of Valar Ventures in the coming year? (Round your answer to two decimal places) C) What is the expected standard deviation of Palantir Technologies' return in the coming year? (Round your answer to two decimal places)

You have the below information about the expected returns of Palantir Technologies and Valar Ventures for the coming year, which both heavily depend on the state of the economy: Economic State Probability Palantir Technologies Valar Ventures Boom 0.10 21.00% 39.00% Normal 0.55 12.00% 17.00% Recession 0.35 0.00% -8.00% A) What is the expected return of Palantir Technologies in the coming year? (Round your answer to two decimal places) B) What is the expected return of Valar Ventures in the coming year? (Round your answer to two decimal places) C) What is the expected standard deviation of Palantir Technologies' return in the coming year? (Round your answer to two decimal places)

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 25SP: Start with the partial model in the file Ch07 P25 Build a Model.xlsx on the textbook’s Web site....

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