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E. Increase in consumer spending 3. Southern Wear stock has an expected retum of 15.1 percent. The stock is expected to lose percentina recession and

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E. Increase in consumer spending 3. Southern Wear stock has an expected retum of 15.1 percent. The stock is expected to lose percentina recession and earn 18 percent in a boom. The probabilities of a recession, a normal economy, and a boom are 2 percent, B7 percent, and 11 percent, respectively. What is the expected return on this stock if the economy is normal? A 14.79 percent B. 17.04 percent C 15.26 percent D. 16.43 percent E. 11.08 percent 4. Westover stock is expected to return 36 percent in a boom, 14 percent in a normal economy, and lose 75 percent in a recession. The probabilities of a boom, normal economy, and a recession are 2 percent, 93 percent, and 5 percent, respectively. What is the standard deviation of the returns on this stock? A. 19.90 percent B. 20.52 percent C. 20.41 percent D. 18.79 percent E. 19.74 percent 5. What is the beta of the following portfolio? 4. Westover stock is expected to return 36 percent in a boom, 14 percent in a normal economy, and lose 75 percent in a recession. The probabilities of a boom, normal economy, and a recession are 2 percent, 93 percent, and 5 percent, respectively. What is the standard deviation of the returns on this stock? A. 19.90 percent B. 20.52 percent C. 20.41 percent D. 18.79 percent E. 19.74 percent oth 5. What is the beta of the following portfolio

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