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Suppose the following information represents possible future reutnrs for ATT stock next year:

State of Economy Probability of state of economy Rate of return if state occurs

1

.20

12%

2 .20 6%
3 .20 -10%
4 .20 22%
5 .20 5%

1.00

What is the expected rate of return for ATT common stock?

What is the variance of return for ATT common stock?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92844875

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