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Given the following information, calculate the expected return and standard deviation of the investment. State of the economy Probability Expected rate of return Good 30%
Given the following information, calculate the expected return and standard deviation of the investment.
State of the economy | Probability | Expected rate of return |
Good | 30% = 0.3 | 20% |
Average | 45% =0.45 | 10% |
Bad | 25% = 0.25 | -5% |
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