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A company has the following Expected Outcomes of Returns under varying performance scenarios of the Economy: Economy Probability Outcome Return Recession 20% -5% Normal 50%
A company has the following Expected Outcomes of Returns under varying performance | |||||
scenarios of the Economy: | |||||
Economy | Probability | Outcome Return | |||
Recession | 20% | -5% | |||
Normal | 50% | 12% | |||
Boom | 30% | 19% | |||
The expected return and standard deviation are: | |||||
a | Expected Return 10.7%, Standard Deviation of return 8.4% | ||||
b | Expected Return 8.4%, Standard Deviation of return 10.7% | ||||
c | Expected Return 10.7%, Standard Deviation of return 0.07% | ||||
d | Expected Return 8.4%, Standard Deviation of return 0.07% | ||||
e | Expected Return 8.7%, Standard Deviation of return 8.4% | ||||
f | none of the above |
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