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4. The expected return and standard deviation of a company stock over the next year are estimated to be 20 per cent and 12 per

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4. The expected return and standard deviation of a company stock over the next year are estimated to be 20 per cent and 12 per cent, respectively. Assume that the returns are approximately normally distributed. a. Determine the probability of incurring a loss (negative rate of return) from investing in this stock. 1 b. Determine the probability of earning a rate of return less than the risk-free rate of 6 per cent

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