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2. You are interested in buying a stock that has a price of $420. You have projected the following probabilities: Stock Price (in time 1)

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2. You are interested in buying a stock that has a price of $420. You have projected the following probabilities: Stock Price (in time 1) Probability .10 20 25 20 20 05 800 500 440 380 340 50 Answer the following (showing all work): (a) what is the expected return on the stock if you buy today and sell next year? (b) what is the expected standard deviation of the stock

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