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Consider these two scenarios: Say Johnson & Johnson has an expected return of 6% with a standard deviation of 5% Puma Biotech, with an unproven

Consider these two scenarios: Say Johnson & Johnson has an expected return of 6% with a standard deviation of 5% Puma Biotech, with an unproven cancer drug, has an expected return of 10% with a standard deviation of 15% Which stock is riskier? Puma is riskier Assume each stock trades at $100 per share. For each stock, what range of stock prices captures 95.4% of expected returns? What is the most likely return for each stock?

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