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There are three states of the economy: Boom Normal and Recession where the probability of each state is 30% 30% and 40% respectively. Calculate the
There are three states of the economy: Boom Normal and Recession where the probability of each state is 30% 30% and 40% respectively. Calculate the volatility of stock A if it is expected to have 10% return in boom 2% return in normal and -6% return in recession. Is it 0.0010 0.0013 0.0017 0.0021?
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