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Question through 11 Each has 5 points (or course total is 50 points) Over the past 3 years, which of the following investments has provided

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Question through 11 Each has 5 points (or course total is 50 points) Over the past 3 years, which of the following investments has provided the smallest average return? Small company stocks B) Common stocks C) Treasury bills D) Treasury bonds E) Corporate bonds A) Over the past 83 years, which of the following investments has been considered the most risky? Small company stocks B) Common stocks C) Treasury bills D) Treasury bonds E) Corporate bonds Carson Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below. What's the standard deviation of the estimated returns? (Hint: Use the formula for the standard deviation of a population, not a sample.) Economic Conditions Strong Normal Weak Prob. 30% 40% 30% Return 32.0% 10.0% -16.0% a. 17.69% b. 18.62% c. 19.55% d. 20.52% e. 21.55%

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