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Consider a wheel of fortune that has an equal probability of one of six outcomes when you spin it. You pay $1 to spin it
Consider a wheel of fortune that has an equal probability of one of six outcomes when you spin it. You pay $1 to spin it and the possible payoffs are: $0, $-1, $-1, $2, $3, and $4. Determine the total return and total rate of return for a $1 spin. In addition, find the variance for each of the returns (hint: use the definition of variance; also remember that r = R 1).
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