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You recently purchased a share of Yellow Submarine stock that is expected to earn 15 percent in a booming economy, 10 percent in a normal
You recently purchased a share of Yellow Submarine stock that is expected to earn 15 percent in a booming economy, 10 percent in a normal economy, and 1 percent in a recessionary economy. There is a 10 percent probability of a boom, 70 percent chance of a normal economy and a 20 percent chance of a recession. What is your expected rate of return on this stock? and What is the Standard Deviation?
Please solve using excel and show the formulas you used. Thanks! | |||||||||
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