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I am having trouble as can someone help me solve this? There are 4 scenarios of the market. An asset returns -5% in scenario 1,
I am having trouble as can someone help me solve this?
There are 4 scenarios of the market. An asset returns -5% in scenario 1, 10% in scenario 2, -15% in scenario 3 and 20% in scenario 4. The probabilities of scenario 1-4 are 15%, 20%, 30% and 35% respectively. What is the return of the stock? What is the variance of the stock Step by Step Solution
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