Question
Trevor Inc's stock has experiences an expected return of 15%. Given the information below: State of the Economy Probability of State of Economy Rate of
Trevor Inc's stock has experiences an expected return of 15%. Given the information below:
| State of the Economy | Probability of State of Economy | Rate of Return |
| Recession | .18 | ? |
| Normal | .65 | .13 |
| Boom | .17 | .24 |
a. What is the expected return if the economy is in recession
b. What is the standard deviation of the return?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
