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An analyst estimates that a stock has the following probabilities of year-end prices: Stock price Probability $80 0.1 $85 0.4 $90 0.3 $95 0.2 Calculate

  • An analyst estimates that a stock has the following probabilities of year-end prices:

Stock price

Probability

$80

0.1

$85

0.4

$90

0.3

$95

0.2

Calculate the variance and the standard deviation

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