Question: You have been hired as a consultant for a Saudi Arabian hospital to assess the risk for securities. You have determined that the four categories of the Saudi Arabian economy are depression, recession, normal, and booming. Using the information below, calculate the expected return, variance, and standard deviation for the stock portfolio. What do these answers convey about the organization’s risk? ( table on the attachments)
Categories Percentage Hospital Stock Booming 27% 20% Normal 36% 10% Recession 27% 5% Depression 9% -5%
Be sure to include:
Analysis of the acceptable level of risk.
Summary of findings.
Answer:
| Categories | Percentage | Hospital Stock |
| Booming | 27% | 20% |
| Normal | 36% | 10% |
| Recession | 27% | 5% |
| Depression | 9% | -5% |