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4. You have two companies and you rate of return expectations are as follows Madison Beer Corp. Possible rate of return Probability -0.10 0.30 0.00

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4. You have two companies and you rate of return expectations are as follows Madison Beer Corp. Possible rate of return Probability -0.10 0.30 0.00 0.10 0.10 0.30 0.25 0.30 Lauren Computer Co. Possible rate of return -0.60 -0.30 -0.10 0.20 0.40 | 0.80 Probability 0.05 0.20 0.10 0.30 0.20 0.15 a. Calculate expected rates of returns for the two companies b. Without any formal computations, do you consider Madison Beer or Lauren Computer to present greater risk? Discuss your reasoning

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