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Pederer Co.s stock has a 10% chance of producing a 20% return, a 50% chance of producing a 12% return, and the rest of the
Pederer Co.s stock has a 10% chance of producing a 20% return, a 50% chance of producing a 12% return, and the rest of the chance of producing a -15% return. What is the firm's expected risk?
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