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You have the following information on Nacho Corporation. Assume all states of nature are equally likely. Given the information below, calculate the average return for
- You have the following information on Nacho Corporation. Assume all states of nature are equally likely. Given the information below, calculate the average return for Nacho and the standard deviation (for a population) for Nacho. Answers should be xx.xx
| State of Nature | Return |
| Recession | -10% |
| Expected | 34% |
| Boom | 60% |
- If Nacho Corporation has a beta of 1.20 and the market has a standard deviation of 20%, calculate the correlation between Nacho and the market. Answers should be xx.xx.
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Empirical Finance For Finance And Banking
Authors: Robert Sollis
1st Edition
047051289X, 978-0470512890
