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1 . Following are three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0 . 2 3 3 3
Following are three economic states, their likelihoods, and the potential returns:
Economic State Probability Return
Fast growth
Slow growth
Recession
Determine the standard deviation of the expected return.
Note: Do not round intermediate calculations and round your answer to decimal places.
If the riskfree rate is percent and the risk premium is percent, what is the required return?
Note: Round your answer to decimal place.
You have a portfolio with a beta of What will be the new portfolio beta if you keep percent of your money in the old portfolio and percent in a stock with a beta of
Note: Do not round intermediate calculation and round your answer to decimal places.
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