Question: 4.29% O-5.19% Question 13 1 pts A project's expected return is 15%, which represents a 35% return in a booming economy and a 5% return

 4.29% O-5.19% Question 13 1 pts A project's expected return is

4.29% O-5.19% Question 13 1 pts A project's expected return is 15%, which represents a 35% return in a booming economy and a 5% return in a stagnant economy. What is the probability of a stagnant economy occurring if these are the only two economic states? 50% 25.66% 33.33% 66.67% Question 14 The fact that historical returns on Treasury bills are less volatile than common stock returns indicates that: O A. the variance of Treasury bill returns is zero. the real return on Treasury bills has been negative. O common stocks should offer a higher return than Treasury bills the standard deviation of Treasury bill returns is negative

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