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Problem II Dante's Inc. stock has a 20% chance of producing a 40% return, a 20% chance of producing a 20% return, a 40% chance
Problem II Dante's Inc. stock has a 20% chance of producing a 40% return, a 20% chance of producing a 20% return, a 40% chance of producing no return (0%) and a 20% chance of producing a -30% return. What is Dante's expected rate of return (5 Points)? Problem III Assume the answer you got in the above question was 5 percent (1.e., assume Dante's expected return is 5%), what would be the standard deviation for ante's stock (5 Points)
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