Question: You have concluded that next year the return on a stock would have the following distribution. Economic Status Probability Rate of Return Weak Economy 0

You have concluded that next year the return on a stock would have the following distribution.
Economic Status Probability Rate of Return
Weak Economy 0.155%
Static Economy 0.605%
Strong Economy 0.2515%
1. What is your expected rate of return on the stock for the next year? What is the standard
deviation of the stock?

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