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The answer in second pic so I want to know how he get this answer k sells for $40 per share. Each of the 3
The answer in second pic so I want to know how he get this answer k sells for $40 per share. Each of the 3 states listed below is equally likely. The return on Treasury bills is 4%. The stock's likely dividend payout and end-of-year price depend on the state of the economy as follows: state boom normal recession dividend $2.00 $1.00 $.50 price $50 $43 $34 A. Find the expected return and standard deviation of the stock B. Find the expected return and standard deviation of a portfolio invested half in the stock and half in Treasury bills
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