An investement manager thinks stock ABC has a return distribution as depicted via the four...
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Finance
An investement manager thinks stock ABC has a return distribution as depicted via the four scenarios in Table A. cALCULATE THE STOCK EXPECTED RETURN, and standard deviation.
Level Of Demand
Probability Of Occurrence
Return Associated With Occurrence
Weak
15%
-15%
Average
40%
10%
Above Average
35%
15%
Very Strong
10%
25%
a. What is stock ABC's expected return?
b. What is the standard deviation of stock ABC's expected rate of return
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