1 - What is the range, expected rate of return, variance, and standard deviation of the...

1 - What is the range, expected rate of return, variance, and standard deviation of the information below?

Economic Condition	Probability	Expected Return
Better than expected	0.15	0.65
Good	0.25	0.3
Average	0.45	0.15
Poor	0.1	-0.15
Terrible	0.05	-0.35

2 - A stock has a beta of 1.65, risk-free rate of return of 0.04, and a market risk premium of 0.15. What is the required rate of return?

Expert Solution

jeff jeffy answered 1 year ago

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