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Assume that the economy can experience nign growth, normal growth, or recession. Under these conditions, you expect the foliowing stock market returns for the coming

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Assume that the economy can experience nign growth, normal growth, or recession. Under these conditions, you expect the foliowing stock market returns for the coming year: 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 $ and the expected rate of return is %. b. Compute the standard deviation of the percentage return over the coming year. Standard deviation = c. If the risk-free return is 7 percent, what is the risk premlum for a stock market investment? Risk Dremium = %

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