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QUESTION 1 Consider the following information on tvo stocks Stock 1 Rate of Return Probability of State of Economy Stock 2 Rate of Return -

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QUESTION 1 Consider the following information on tvo stocks Stock 1 Rate of Return Probability of State of Economy Stock 2 Rate of Return - 28 State of the Economy -12 35 .09 Boom 4 5 48 53 Normal Bust -15 10pt Calculate the expected retum and standard deviation of each stock For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) y s Paragraph Arial IT 3 * 2 x x x T Te

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