Question: Calculate the expected return; Variance and standard deviation of a ABC Inc. stock if the economy is expected to be very good with 6% chance

Calculate the expected return; Variance and standard deviation of a ABC Inc. stock if the economy is expected to be very good with 6% chance and expected to be normal with 60% chance and likely to be in recession with 34% chance and the expected return on this stock are likely to be 8.4%; 8.9% and 9.2% respectively if economy is in Boom; Normal or in Recession.

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