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Suppose that in 2 0 2 4 , there are three possible growth rates for the US economy: high, normal, low and the associated probabilities
Suppose that in there are three possible growth rates for the US economy: high, normal, low and the associated probabilities of the three scenarios are: respectively. Further assume that the return on the stock market during the year will be and respectively in these three scenarios, and the return on the year Tbond will be and in these three scenarios. What are the standard deviations of stocks' and bonds' returns in What is the correlation coefficient between stocks' and bonds' returns?
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