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Rate of Return Probability 20% 0.30 5% 0.40 -10% 0.30 a. What is the expected return...

Rate of Return

Probability

20%

0.30

5%

0.40

-10%

0.30

a. What is the expected return of this stock?

b. What is the standard deviation of the expected return?

c. What is the confidence interval of the expected return within one standard deviation? Within two standard deviations?

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago
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