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Cola Corporation has a beta of .50. The market has a standard deviation of 20%. Assume all states of nature are equally likely. Given the

Cola Corporation has a beta of .50. The market has a standard deviation of 20%. Assume all states of nature are equally likely. Given the information below, calculate the average return for Cola , the standard deviation (for a population) for Cola and the correlation between Cola and the market .

State of Nature Return
Recession -15%
Expected 25%
Boom 50%

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