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7. A stock is expected to return 35% in a boom, 15% in a normal economy, and lose 65% in a recession. The probabilities of

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7. A stock is expected to return 35% in a boom, 15% in a normal economy, and lose 65% in a recession. The probabilities of a boom, normal economy, and a recession are 5%90% and 5%, respectively. What is the standard deviation of the returns on this stock? 8. Astock has a beta of 1.4. If the market risk premium is 8% and the risk-free rate is 2.3%. what is the expected return on this stock

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