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please show all work The Grunewald Company has developed the following data regarding the rates of return on a potential stock A and the market:
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The Grunewald Company has developed the following data regarding the rates of return on a potential stock A 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 expected returns for the stock A and the market. b. Given that the standard deviation of stock A's return is 15.81%. Calculate the probability that stock A's return is higher than 25.81%, that is P (K>25.81%=? c. Calculate the probability that stock A's return is between -5.81% and 25.81%, that is P (-5.81%Step by Step Solution
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