What is the expected rate of return for stock

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Reference no: EM131456639

An analyst thinks the following three scenarios are possible for Stock A: 1) bear market, probability = .2, Stock A return = -20%; 2) normal market, probability = .4, Stock A return = 10%; 3) bull market, probability = .4, Stock Areturn = 20%.

A) What is the expected rate of return for Stock A?

B) What is the standard deviation for Stock A?

Reference no: EM131456639

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