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A. (4 marks) Consider the following information about Stock A: Economic State Probability Return Recession 40% 10% Normal 15% -15% Expansion 45% 20% Calculate the
A. (4 marks) Consider the following information about Stock A:
Economic State | Probability | Return |
Recession | 40% | 10% |
Normal | 15% | -15% |
Expansion | 45% | 20% |
Calculate the expected return, the variance, standard deviation, and coefficient of variation for this stock. Interpret your answers
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