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Denard has two investment opportunities. He can invest in The Sunglasses Company or The Umbrella Company. What is the expected return and standard deviation of

Denard has two investment opportunities. He can invest in The Sunglasses Company or The Umbrella Company. What is the expected return and standard deviation of each company?

State of the Economy

Probability of the State

Expected Return Sunglasses Company

Expected Return Umbrella Company

Sunny

.50

25%

0%

Rainy

.50

0%

25%

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