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Given the following probability distributions, what are the standard deviations for the Market and for Security J? (rm is the return for the market, and

  1. Given the following probability distributions, what are the standard deviations for the Market and for Security J? (rm is the return for the market, and rj is the return for security J)

State PRj rm rj

1 0.3 -20% 40%

2 0.4 10% -20

3 0.3 20% 20

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