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Please bold answer, Just provide answer Thank you Suppose you have a project that has a 0.8 chance of doubling your investment in a year
Please bold answer, Just provide answer Thank you
Suppose you have a project that has a 0.8 chance of doubling your investment in a year and a 0.2 chance of halving your investment in a year. What is the standard deviation of the rate of return on this investment? (Do not round Intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Standard deviation 96 Suppose that there are many stocks in the security market and that the characteristics of stocks A and B are given as follows: Stock A B Expected Return 14% 18 Correlation = -1 Standard Deviation 7% 9 Suppose that it is possible to borrow at the risk-free rate. If. What must be the value of the risk-free rate? (Hint: Think about constructing a risk-free portfolio from stocks A and B.) (Do not round Intermediate calculations. Round your answer to 3 decimal places.) Answer is complete but not entirely correct. Risk-free rate 15.250 %Step by Step Solution
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