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A stock will provide a rate of return of either ?27% or +35%. . If both possibilities are equally likely, calculate the expected return and
A stock will provide a rate of return of either ?27% or +35%. |
. | 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.) If Treasury bills yield 4% and investors believe that the stock offers a satisfactory expected return, what must the market risk of the stock be? |
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