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Chapter 5 Homework Assignment: 1) You invested in a 3-month certificate of deposit at your bank. Your investment was $2,170, and at the end of

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Chapter 5 Homework Assignment: 1) You invested in a 3-month certificate of deposit at your bank. Your investment was $2,170, and at the end of the term you will receive $2,178. a. What is the holding period return (HPR) on your investment? b. What is the annual percentage rate (APR)? c. What is the effective annual rate (EAR)? 2) The following data represent the probability distribution of the holding period returns for an investment in Lazy Rapids Kayaks (LARK) stock. State of the Economy Scenario #(s) Probability, p(s) HPR Boom 1 0.356 30.00% Normal growth 2 0.444 7.90% Recession 3 0.20 -18.60% a. What is the expected return on LARK? b. What is the standard deviation of the returns on LARK

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