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Parts A, B, and C most be indivdually answered for each chart parts A, B, and C must be individually answered for each chart 1.

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Parts A, B, and C most be indivdually answered for each chart
parts A, B, and C must be individually answered for each chart
1. Use the charts below to complete these questions a. Compute the standard deviation for this stock. Note: The expected return is already done. (8 points b. Based on these results, what does it tell you about the risk of the asset? (6 points c. Explain the concept of correlation and how it pertains to diversification. (4 points I Use Chart 1 Chart 1 Probability Return 0.2 0.05 0.6 0.2 0.1 -0.05 6.00% Expected Return Use Chart 2 I Chart 2 Year 1 Year 2 5.00% 10.00% -5.00% 10.00% Year 3 Expected Return

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