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Use the following information on states of the economy and stock returns to calculate the expected return and the standard deviation of returns. Assume
Use the following information on states of the economy and stock returns to calculate the expected return and the standard deviation of returns. Assume that all three states are equally likely. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) State of Economy Recession Normal Security Return If State Occurs -8% 13 Boom Expected return Standard deviation 23 9.33% %
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