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State of the Economy Probability PROBABILITY HOLDING RETUN PERIOD BOOM 0.30 18% Normal growth 0.50 12% Recession 0.20 -5% a) What is the expected holding-period

State of the Economy Probability	PROBABILITY	HOLDING RETUN PERIOD
BOOM	0.30	18%
Normal growth	0.50	12%
Recession	0.20	-5%

a) What is the expected holding-period return?

b) What is the expected standard deviation?

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