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Following details are available about stock A: 20% chance that the return of the stock will be 14%, 15% chance that the return of the
Following details are available about stock A: 20% chance that the return of the stock will be 14%, 15% chance that the return of the stock will be 15%, 25% chance that the return of the stock will be 16% and 40% chance that the return of the stock will be 17%. Calculate the average return and risk of the stock and interpret your answer.
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