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Based on the following information, calculate the expected return and standard deviation for the stock. State Probability of State Return Recession .30 -20% Normal .40
Based on the following information, calculate the expected return and standard deviation for the stock.
State | Probability of State | Return |
Recession | .30 | -20% |
Normal | .40 | 12% |
Boom | .30 | 24% |
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
