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The data below represent the probability distribution of the holding period returns for an investment in Stock A. State of the Economy Scenario #(s) Probability,
The data below represent the probability distribution of the holding period returns for an investment in Stock A. State of the Economy Scenario #(s) Probability, p(s) HPR Boom 1 0.356 30.00% Normal growth 2 0.444 7.90% Recession 3 0.20 18.60% Required:
a. What is the expected return on Stock A? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. What is the standard deviation of the returns on Stock A? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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