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7-7. Expected Rate of Return and Risk The following table shows the annual returns over time for two stocks. Probability A B 0.10 -3% -10%

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7-7. Expected Rate of Return and Risk The following table shows the annual returns over time for two stocks. Probability A B 0.10 -3% -10% 0.20 0.40 0.20 12 16 0.10 17 24 Calculate each stock's expected return, standard deviation, and coefficient of variation. 1 2 7 8

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