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flemingpk flemingpk
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6 months ago
You have given the following forecasts for the economy and Stock A: (1) the probability of having a recession next year is 30.0%, a normal economy is 55.0%, and an expansion is 15.0%, and (2) the price of Stock A will be $9 if the economy is in recession, $15 if the economy is normal, and $18 if the economy is in expansion. What is the ex ante standard deviation of Stock A's returns if it is currently selling for $12?

▸ 29.4219%

▸ 54.2419%

▸ 26.7804%

▸ 7.1719%
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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jordankites45jordankites45
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6 months ago
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flemingpk Author
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6 months ago
Smart ... Thanks!
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Yesterday
This helped my grade so much Perfect
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2 hours ago
Thanks for your help!!
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