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  3. a security is expected to produce the following re

A security is expected to produce the following returns depending on the state of the...

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Finance

A security is expected to produce the following returns depending on the state of the economy.

State of the economy

Probability of the state

Expected return

Good

0.3

20%

Average

0.5

10%

Bad

0.2

- 5%

What the expected rate for return security? What is the risk (standard deviation) of the security?

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