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6. Assume the probabilities of four future scenarios are 0.15, 0.30, 0.35 and 0.20, and the returns of a stock associated with each of those
6. Assume the probabilities of four future scenarios are 0.15, 0.30, 0.35 and 0.20, and the returns of a stock associated with each of those scenarios are 4%, 6%, 9% and 15%. Based on this information, what are the expected return and the standard deviation of the returns for this stock? Show your calculations.
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