Calculating Returns and Standard Deviations Based on the following information, calculate the expected return and standard deviation:

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Calculating Returns and Standard Deviations Based on the following information, calculate the expected return and standard deviation:

State of Economy Probability of State of Economy Rate of Return if State Occurs Depression .10 2.105 Recession .25 .059 Normal .45 .130 Boom .20 .211

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Corporate Finance With Connect Access Card

ISBN: 978-1259672484

10th Edition

Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe

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