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Question 8-2: Assume that over the neat yedr you expect: - A 40% chance of a boom - A 60% chance of a bust -

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Question 8-2: Assume that over the neat yedr you expect: - A 40\% chance of a boom - A 60% chance of a bust - A stock will be up 20% if there is boom and down 10% if there is s bust - S0E(R)=2.00% - Calculate the Standard Deviation (o) of the retum. A. 248% B. 3,56% C. 14.709 2=i=12(ri7)2P D. 19.85% E. 35.30%

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