Question
Consider the following information on two stocks: .48 State of the Economy Probability of State of Economy Stock 1 Rate of Return Stock 2 Rate
Consider the following information on two stocks:
.48
| State of the Economy | Probability of State of Economy | Stock 1 Rate of Return | Stock 2 Rate of Return |
| Boom | .35 | .12 | -.28 |
| Normal | .5 | .4 | .09 |
| Bust | .15 | .53 |
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Foundations Of Finance
Authors: Arthur J Keown, John D Martin, J William Petty
7th Edition
0133370356, 9780133370355
