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It is equally probable that stock A will have a +8 percent or -6 percent rate of return. The only other possibility is that it
It is equally probable that stock A will have a +8 percent or -6 percent rate of return. The only other possibility is that it will return +3 percent. The probability of +3 percent is twice that for a return of +8 percent. What is the expected return and standard deviation of return for stock A?
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