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What is the firm expected rate of return

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Problem 1: Economic conditions during the next year will be strong, normal, or weak, and the firm's returns will have the probability distribution shown below. What's the firm's expected rate of return and standard deviation of the estimated returns?

                 Economic
Conditions  Prob.     Return
Strong           20%    25.0%
Normal           60%    12.0%
Weak           20%   -15.0%

Reference no: EM132797390

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