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2. An analyst believes that economic conditions during the and she thinks that the Cori Companys returns will have the follo
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Answer #1
Conditions Probability Return Prob*(Return - Mean)^2
Strong 0.30 30.00% 0.97%
Normal 0.40 15.00% 0.04%
Weak 0.30 -10.00% 1.45%
Variance 2.46%
Std dev 15.68%
Mean 12.00%
COV = Stdev/Mean COV =                                        1.307
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