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Q1) There is a 29.30% probability of a below average economy and a 70.70% probability of an average economy. If there is a below average
Q1) There is a 29.30% probability of a below average economy and a 70.70% probability of an average economy. If there is a below average economy stocks A and B will have returns of 1.30% and 13.20%, respectively. If there is an average economy stocks A and B will have returns of 14.80% and -9.10%, respectively. Compute the: a) Expected Return for Stock A (0.75 points): b) Expected Return for Stock B (0.75 points): c) Standard Deviation for Stock A (0.75 points): d) Standard Deviation for Stock B (0.75 points)
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