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You recently purchased a stock that is expected to earn 30% in a booming economy, 9% in a normal economy, and lose 33% in a
You recently purchased a stock that is expected to earn 30% in a booming economy, 9% in a normal economy, and lose 33% in a recessionary economy. There is a 5% probability of a boom and a 75% chance of a normal economy. What is your expected rate of return on this stock? What is the standard deviation
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