You have $500 to invest. You decide to split it into two parts. The return on each
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You have $500 to invest. You decide to split it into two parts. The return on each $250 will be determined by a coin toss, and the results of the two tosses are not correlated. If the coin comes up heads, the investment will return 10% and if it comes up tails it will return -10%.
What is the average return, the return variance, and the return standard deviation of this investment?
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