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What is the standard deviation of the returns on a stock given the following information? State of Economy Probability of State of Economy Rate of
What is the standard deviation of the returns on a stock given the following information? |
State of Economy | Probability of State of Economy | Rate of Return if State Occurs |
Boom | 30% | 15% |
Normal | 65 | 12 |
Recession | 5 | 6 |
1.57 percent |
2.03 percent |
2.89 percent |
3.42 percent |
4.01 percent |
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