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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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