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Consider two scenarios, with probability and we with probability. Suppose that the return on some security is K = -2% in the first scenario

Consider two scenarios,  with probability and we with probability. Suppose that the return on some security

Consider two scenarios, with probability and we with probability. Suppose that the return on some security is K = -2% in the first scenario and K =8% in the second scenario. If the return on another security is K= -4% in the first scenario, find the return K22 in the other scenario such that the two securities have the same risk.

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