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Question 2 (7 points) Given the following probability distribution, what is the standard deviation of returns State 1 2 Probability 0.25 0.75 Return -18% 14%

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Question 2 (7 points) Given the following probability distribution, what is the standard deviation of returns State 1 2 Probability 0.25 0.75 Return -18% 14% 096 24.99 696 13.9% 17.3%

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