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Question: Suppose Allegheny Stock has an equally likely probability of a +45% return or a -25% return. What are the expected return and volatility of
Question: Suppose Allegheny Stock has an equally likely probability of a +45% return or a -25% return. What are the expected return and volatility of its returns?
How do we calculate these with only the percentage probability?
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
