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You are given the following data for a security on the stock market: State of the economy Probability HPR Recession 0,25 -18% Normal 0,50 16%

You are given the following data for a security on the stock market: State of the economy Probability HPR Recession 0,25 -18% Normal 0,50 16% Boom 0,25 48% 2.1 Compute the expected rate of return [E(r)] on the stock index fund. 2.2 Calculate the variance and the standard deviation of the stock index fund

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