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Question 4 (1 point) Consider the following distribution of returns: State of the Economy Probability R A R B Boom 20% 30% 7% Normal Growth
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Question 4 (1 point)
Consider the following distribution of returns:
State of the Economy | Probability | RA | RB |
Boom | 20% | 30% | 7% |
Normal Growth | 40% | 0% | 3% |
Recession | 40% | -15% | 2% |
What is the expected return of security A?
Question 4 options:
0% | |
12% | |
8% | |
None of these |
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