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Q1) There is a 46.60% probability of a below average economy and a 53.40% probability of an average economy. If there is a below average
Q1) There is a 46.60% probability of a below average economy and a 53.40% probability of an average economy. If there is a below average economy stocks A and B will have returns of -4.70% and 9.30%, respectively. If there is an average economy stocks A and B will have returns of 16.80% and 4.00%, 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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