Problemescapists films corp sells home videos in a boom, Ask an Expert

Accounting

Problem:

Escapists Films Corp. sells home videos. In a boom economy its rate of return is negative 28% in a normal economy it rate of return is 8% and in a recession its rate of return is 48% All three possible states of the economy are equally likey.

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Question: Calculate the expected rate of return and standard deviation of Escapist?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169677

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