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2. A stock will have a loss of 10 percent in a recession, a gain of 15 percent in a normal economy, and a

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2. A stock will have a loss of 10 percent in a recession, a gain of 15 percent in a normal economy, and a gain of 20 percent in a boom. There is 10 percent probability of a recession, 70 percent probability of normal economy, and 20 percent probability of boom. 2a. What is the expected return of this stock? 2b. What is the standard deviation of the stock's returns (rounded to the nearest tenth of a percent)?

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