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You are given the following data for a security on the stock market: (9 marks) State of the economy Probability HPR Recession 0,25 -16% normal
| You are given the following data for a security on the stock market: (9 marks) | ||||
| State of the economy | Probability | HPR | ||
| Recession | 0,25 | -16% | ||
| normal | 0,50 | 14% | ||
| boom | 0,25 | 44% | ||
| 1.2.1 Compute the expected rate of return [E(r)] of the stock (3 marks) | ||||
| 1.2.2 Calculate the variance and the standard deviation of the stock index fund. | ||||
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Financial Management Core Concepts
Authors: Raymond Brooks
3rd Edition
0133866742, 9780133866742
