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b The following rates of investments are expected from an investment in Equity Bank Share under various political conditions at the stock market. Condition Probability
b The following rates of investments are expected from an investment in Equity Bank Share under various political conditions at the stock market.
Condition | Probability | Return |
Political stability | 0.2 | 12% |
Moderate stability | 0.3 | 10% |
Political instability | 0.5 | 8% |
i. The expected return. (2 marks)
ii. The standard deviation. (3 marks)
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