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Problem 1: Portfolio expected value and standard deviation An investment has the following range of outcomes and probabilities: Outcomes 5% 7 12 Probability of Outcomes

Problem 1: Portfolio expected value and standard deviation

An investment has the following range of outcomes and probabilities:

Outcomes	5%	7	12
Probability of Outcomes	0.25	0.50	0.25

1. What is the expected value?

2. What is the standard deviation?

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