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Assume an investor has $100 and stock ABC is priced $8, and the risk-free offers zero return. Stock ABC can go up by 100% or

Assume an investor has $100 and stock ABC is priced $8, and the risk-free offers zero return. Stock ABC can go up by 100% or down by 50% with probability .5. The investment period is three periods ahead.

What is the standard deviation of terminal wealth if the investor always allocate 50% of her wealth on the stock ABC?

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