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Risk and Return Hull Consultants, a famous think tank in the Midwest, has provided probability estimates for the four potential economic states for the coming

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Risk and Return Hull Consultants, a famous think tank in the Midwest, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 30%. the probability of a stable growth economy is 45%, and the probability of a recession is 25%. Calculate the variance and the standard deviation of the two investments: stock and corporate bond. If the estimates for both the probabilities of the economy and the returns in each state of the cconomy are correct, which investment would you choose, considering both risk and retum

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