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Q) There is a 18.47% probability of a below-average economy and a 81.53% probability of an average economy. If there is a below-average economy, Stocks
Q) There is a 18.47% probability of a below-average economy and a 81.53% probability of an average economy. If there is a below-average economy, Stocks A and B will have returns of -3.70% and -6.47% , respectively. If there is an average economy, Stocks A and B will have returns of 18.40% and 13.01%, respectively. Compute the following for Stocks A and B: |
a) Stock A Expected Return : (1 point) |
b) Stock B Expected Return : (1 point) |
c) Stock A Standard Deviation : (1.5 points) |
d) Stock B Standard Deviation : (1.5 points) |
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