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4. Next year, we will be in a boom, bust, or normal state with 25%, 25% and 50% probabilities respectively. Apple will return 15%, -22%
4. Next year, we will be in a boom, bust, or normal state with 25%, 25% and 50% probabilities respectively. Apple will return 15%, -22% and 7% in each state again respectively). a. What is the expected return for Apple next year? b. What is the standard deviation of returns for Apple next year
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