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A stock will provide a rate of return of either 20% or +30%. a. If both possibilities are equally likely, calculate the expected return and

A stock will provide a rate of return of either 20% or +30%.

a. If both possibilities are equally likely, calculate the expected return and standard deviation. (Do not round intermediate calculations. Round your answers to 1 decimal place.)
Expected return %
Standard deviation %
b.

If Treasury bills yield 5% and investors believe that the stock offers a satisfactory expected return, what must the market risk of the stock be?

Market risk %

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