Calculate the expected rate of return and standard deviation

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Reference no: EM13280280

Escapists Films Corp. sells home videos. In a boom economy its rate of return is negative 28% in a normal economy it rate of return is 8% and in a recession its rate of return is 48% All three possible states of the economy are equally likey. Calculate the expected rate of return and standard deviation of Escapist?

Reference no: EM13280280

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