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A stock will provide a rate of return of either -20% or 30%. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. Note: Do not round intermediate calculations. Enter your answers as a whole percent. Expected retum 7 Standard deviation % %

A stock will provide a rate of return of either -20% or 30%. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. Note: Do not round intermediate calculations. Enter your answers as a whole percent. Expected retum 7 Standard deviation % %

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A stock will provide a rate of return of either -20% or 30%. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. Note: Do not round intermediate calculations. Enter your answers as a whole percent. Expected retum 7 Standard deviation % %
Transcribed Image Text:A stock will provide a rate of return of either -20% or 30%. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. Note: Do not round intermediate calculations. Enter your answers as a whole percent. Expected retum 7 Standard deviation % %
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