Question
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 . Answers should be xx.xx
| State of Nature | Return |
| Recession | -15% |
| Expected | 25% |
| Boom | 50% |
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis C. Gapenski
2nd Edition
1567931650, 978-1567931655
