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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 0.30 -20% Normal 0.40
Based on the following information, calculate the expected return and standard deviation for the stock.
State | Probability of State | Return |
Recession | 0.30 | -20% |
Normal | 0.40 | 12% |
Boom | 0.30 | 24% |
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