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Accounting

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You must show all work for any credit! 1. Calculate Buddy's Expected Rate of return given: Buddy Corporation faces the following probability distribution of returns for the coming year: State of The Economy Probability Estimated Return Pxa Boom 0.50 35% 17,5% Normal 0.35 20% Recession 0.15 5% 7% 0.759 T25.2590 2. Given an Expected Return of 21.5%, calculate the standard deviation of returns for Wilma Corp. o-(5-)? P. Wilma Corporation faces the following probability distribution of returns for the coming year: State of The Economy Probability Estimated Return | PXR I 14% 6% (ri-^ 13.550 6i.ge 182.25 Krin? 72.9. Boom 0.40 35% -1.590 0.30 Normal 20% 2.25 10.675 181.675 I 1.590 -16.590 272.25 Recession 0.30 do: 12.46

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