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Question 3 (10 points) The current price of CRZY shares is 50. Over the coming year, there is a 40% probability that share returns will
Question 3 (10 points) The current price of CRZY shares is 50. Over the coming year, there is a 40% probability that share returns will be 10%, a 40% probability that share returns will be 12.5%, and a 20% probability that share returns will be 30%. What is CRZYs expected return and standard deviation of returns for the coming year? Would you buy it?
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