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A stock investor is not sure about the future state of the economy. The table below summarizes his expectation about the future Determine the value

A stock investor is not sure about the future state of the economy. The table below summarizes his expectation about the future

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Determine the value of the stock

A. Expected rate of return B. Standard Deviation

C. coefficient of variation

State of Probability of State the Economy Stock Occurring Recession Return Normal 0.30 -5% Boom 0.50 10% 0.20 the stock 15%

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