EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
4th Edition
ISBN: 9780134202785
Author: DeMarzo
Publisher: VST
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Chapter 10, Problem 2P

a)

Summary Introduction

To determine: The expected return.

Introduction:

Expected return refers to a return that the investors expect on a risky investment in the future.

b)

Summary Introduction

To determine: The standard deviation of the return.

Introduction:

Standard deviation refers to the variation in the actual returns from the expected returns.

Variance refers to the average difference of squared deviations of the actual data from the mean or average.

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EBK CORPORATE FINANCE

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