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Also need the Value at risk: Assume that the economy can experience high growth, normal growth, or recession. Under these conditions, you expect the following

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Also need the Value at risk:

Assume that the economy can experience high growth, normal growth, or recession. Under these conditions, you expect the following stock market returns for the coming year: Probabilit 0.2 0.7 0.1 State of the Eco Hich Growth Normal Growth Recession Return 50 22% 58 a. Compute the expected value of a $1,000 investment over the coming year. If you invest $1,000 today, how much money do you expect to have next year? What is the percentage expected rate of return? Instructions: Enter dollar values rounded to the nearest whole dollar and percentages rounded to one decimal place The expected value is $ b. Compute the standard deviation of the percentage return over the coming year. Standard deviation = 1% c. If the risk-free return is 7 percent, what is the risk premium for a stock market investment? Risk premium = % and the expected rate of return is

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