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please help no excel thanks (14 pts) The Grunewald Company has developed the following data regarding the rates of return on a potential stock and
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(14 pts) The Grunewald Company has developed the following data regarding the rates of return on a potential stock and the market: State of the Economy Probability of Each Rates of Return If State occurs State Occurring Stock A Market Deep Recession .20 (20%) (30%) Mild recession .20 10 5 Average .20 15 20 Mild boom .20 20 25 Strong boom .20 25 30 a. Calculate the correlation between stock A and the market. b. Calculate the betas for the stock A and the market c. Calculate the probability that stock A's return is lower than negative 8%, that is P (KStep by Step Solution
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