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Question 6 11 p Smokey's Burger Corporation has generated a mean return of 13% with a standard deviation of 9%. a. If you wanted
Question 6 11 p Smokey's Burger Corporation has generated a mean return of 13% with a standard deviation of 9%. a. If you wanted to be 95% certain of your expected return next year, what range of possible returns would you expect to earn? Show range of returns to 2 decimal places xx.xx Question 7 11 Rusty's is a competitor of Smokey's. Rusty's stock has generated a mean return of 19% with a standard deviation of 6%. Which of the stocks represents the greater financial risk? Illustrate by computing the 95% certain expected range of returns for Rusty's and compare the results with those for Smokey's. Question 8 Distinguish between market risk and specific risk. Question 9 Why/how does diversification help an investor manage risk?
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