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A stock has the following probability distribution: If economy is good (the probability is 0.2), its expected stock return is 25%; if economy is on
A stock has the following probability distribution: If economy is good (the probability is 0.2), its expected stock return is 25%; if economy is on average (the probability is 0.6), its expected stock return is 8%; if economy is bad (the probability is 0.2), its expected return is -15%. Find the expected rate of return for the stock
5.2% | ||
6.0% | ||
6.8% | ||
8.5% |
Using the data from Question 33, find the standard deviation (risk) for the stock
11.06% | ||
12.23% | ||
13.56% | ||
13.90% |
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