The following table represents outcome numbers, probabilities, and associated returns for Stock A: Thus, there are 10

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The following table represents outcome numbers, probabilities, and associated returns for Stock A:

Outcome (i) 1 2 3 4 LO 5 6 7 8 9 10 Return (R) 05 15 05 15 15 10 15 05 15 10 Probability (P) 10 10 05 10 10

Thus, there are 10 possible return outcomes for Stock A.

a. What is the probability associated with outcome 9?

b. What is the standard deviation of returns associated with Stock A?

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Financial Trading And Investing

ISBN: 9780323909556

3rd Edition

Authors: John Teall

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Question Posted: Dec 31, 2023 01:07 AM

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The following table represents outcome numbers, probabilities, and associated returns for Stock A: Thus, there are 10

Question:

Outcome (i) 1 2 3 4 LO 5 6 7 8 9 10 Return (R₂) 05 15 05 15 15 10 15 05 15 10 Probability (P₂) 10 10 05 10 10 10 10 10 ? 10

Step by Step Answer:

a Since probabilities must sum to 1 the probability must equal 015 b First note ...View the full answer

Financial Trading And Investing

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