Question: Calculate the expected return and standard deviation for the following single stock: Probability of state Return it state of State of economy of economy economy

Calculate the expected return and standard deviation for the following single stock: Probability of state Return it state of State of economy of economy economy occurs Recession .15 .04 Normal .25 .10 Boom .60 15 The expected return and standard deviation, respectively, are: 9.8%, 2.95% C 12.10%, 6.22% 9.67%, 2275% 12.10%, 4.0% 9.67%, 6.22%

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