Find the expected rate of return for the stock

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A stock has the following probability distribution: If economy is good (the probability is 0.2), its expected stock return is 25%; if economy is on average (the probability is 0.6), its expected stock return is 8%; if economy is bad (the probability is 0.2), its expected return is -15%. Find the expected rate of return for the stock?

Using the data from above, find the standard deviation (risk) for the stock

Reference no: EM132799715

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