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What is the standard deviation of the returns on a stock given the following information? Please explain results. State of Economy Probability of State of
What is the standard deviation of the returns on a stock given the following information? Please explain results.
State of Economy | Probability of State of Economy | Rate of Return if State Occurs |
Boom | .10 | .16 |
Normal | .60 | .11 |
Recession | .30 | -.08 |
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