Question: Question 32 3 Points You predict the following returns for stocks X in three possible states of nature: 2%, 10% and 15%; the Probabilities are

 Question 32 3 Points You predict the following returns for stocks

Question 32 3 Points You predict the following returns for stocks X in three possible states of nature: 2%, 10% and 15%; the Probabilities are 0.2, 0.5 and 0.3, respectively. What are the expected return and the standard deviation of Stock X? A Return: 9.9% per year; SD: 20.3% B Return: 9.9% per year; SD: 4.5% None of the answers (D Return: 9% per year; SD: 5.3%

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