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Stock W has the following returns for various states of the economy: State of the Economy Probability Stock W's Return Recession 0.15 -10% Below Average 0.20 5% Average 0.30 8% Above Average 0.25 12% Boom 0.10 18%   Stock W's expected returns is Stock W's variance is approximately to 5 decimal places [X.XXXXX]

Stock W has the following returns for various states of the economy: State of the Economy Probability Stock W's Return Recession 0.15 -10% Below Average 0.20 5% Average 0.30 8% Above Average 0.25 12% Boom 0.10 18%   Stock W's expected returns is Stock W's variance is approximately to 5 decimal places [X.XXXXX]

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 16PROB
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Stock W has the following returns for various states of the economy:

State of the Economy

Probability

Stock W's Return

Recession

0.15

-10%

Below Average

0.20

5%

Average

0.30

8%

Above Average

0.25

12%

Boom

0.10

18%

 

  1. Stock W's expected returns is
  2. Stock W's variance is approximately to 5 decimal places [X.XXXXX]
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