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What is the expected return and standard deviation on a security given the following information? State Probability Rate of Return Recession 0.14 0.18 Normal 0.75
What is the expected return and standard deviation on a security given the following information?
State | Probability | Rate of Return |
Recession | 0.14 | 0.18 |
Normal | 0.75 | 0.11 |
Boom | 0.11 | -0.05 |
Expected return = ??
Standard Deviation = ??
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