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QUESTION 28 After some study of the economy, your forecast for next year is that a boom economy has a 30% chance of occurring, a

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QUESTION 28 After some study of the economy, your forecast for next year is that a boom economy has a 30% chance of occurring, a neutral economy 5 a 20% chance of occurring You also estimate that a certain stock would have a %, and a bust return or 34% n a boom economy next year 20% n a neutral economyard.2% in a bust economy. The risk-free rate is 4.9% What is the standard deviation of expected returns for this stock next year? (Answer to the nearest tenth of a percent but do not use a percent sign) Probability Return Boom Economy Neutral Economy Bust Economy 30% 50% 34% 20% 20% -12% Risk-Free Rate 4 9%

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