Question: What are the expected return, variance and volatility? State ____Prob. Of State Return in State Boom_____ 0.25 ____________40% Normal_____ 0.40____________ 20% Recession____ ?____________ --20% (negative

What are the expected return, variance and volatility?

State ____Prob. Of State Return in State

Boom_____ 0.25 ____________40%

Normal_____ 0.40____________ 20%

Recession____ ?____________ --20% (negative 20%)

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