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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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