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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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