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25 xathleen has two investment opportunities. She can invest in The Sunglasses Company or the Umbrelio Company. She estimates there is a 75% chance it
25
xathleen has two investment opportunities. She can invest in The Sunglasses Company or the Umbrelio Company. She estimates there is a 75% chance it will romain auny and Sungiasses Ce. slock wa rise 75\% and Umbrella Co, stock will stay flat. She also estimates there is a 25\% chance 1 will rain and Sunglasses Co. stock. will femain flat and Umbenls Co. stock will fas by 50%. If the divenifet her imestment by putting 50% of her money in each company, what is the expected refum and standard deviaton of her pertflio? The expected entum is 34.38% and the standard devition is 4,71% The expected retum is 29.89 is and the standard deviation is 5.41% The expected retum is 39.53% and the standard deviation is 4.71% The expected rebum is 29.89% and the standard deviasion is 4.71% The expectird refum is 34.38% and the standard deviation is 5.41% Step by Step Solution
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