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Julia is considering buying stock in Speculate Inc.: Speculate, Inc., which invests in derivative securities and has a 50 percent chance of returning 0 percent
Julia is considering buying stock in Speculate Inc.: Speculate, Inc., which invests in derivative securities and has a 50 percent chance of returning 0 percent this year and a 50 percent chance of returning 50 percent. a. What are the expected returns to investing in Speculate Inc.? b. What are the standard deviations of the returns to Speculate Inc.?
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