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Business, 27.07.2021 19:50 tiniecisneros28

Next year, we will be in a boom, bust, or normal state with 25%, 25% and 50% probabilities respectively. Apple will return 15%, -22% and 7% in each state (again respectively). a) What is the expected return for Apple next year?
b) What is the standard deviation of returns for Apple next year?

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Next year, we will be in a boom, bust, or normal state with 25%, 25% and 50% probabilities respectiv...

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