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Problem:

John is considering an investment in monsters inc and has gathered the information in the following table.

Required:

What is the expected standard deviation for a share of the firms stock?

Note: Please provide reasons to support your answer.

State of the economy	Probability of the State	Conditional Expected Return Monsters INC
Recession	0.25	-20%
Steady	0.60	10%
Boom	0.15	35%

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Category:- Basic Finance
Reference No.:- M91148086

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