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Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 0.20 0.04
Consider the following information: |
Rate of Return if State Occurs | |||
State of Economy | Probability of State of Economy | Stock A | Stock B |
Recession | 0.20 | 0.04 | -0.20 |
Normal | 0.70 | 0.09 | 0.16 |
Boom | 0.10 | 0.14 | 0.32 |
Calculate the standard deviation for Stock A given the expected return is 8.500%. (Do not round your intermediate calculations.) | |
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