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What is the standard deviation of the expected returns on this stock? State of the economy Boom Probability 0.30 Normal 0.70 TIP: E(R) =PiRi

What is the standard deviation of the expected returns on this stock? State of the economy Boom Probability 0.30 Normal 0.70 TIP: E(R) =PiRi Variance ()=Pi(Ri -) E(R) 25% 12%

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