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Questions 5-6: A Joint Venture Investment An investor has a 100% stake in a project whose profitability is uncertain and has the expected value of

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Questions 5-6: A Joint Venture Investment An investor has a 100% stake in a project whose profitability is uncertain and has the expected value of 500,000 USD and the standard deviation of 1,500,000 USD. The investor decides to partner with nine other investors, each bringing their own project into the partnership, for a 10% stake of the newly formed joint venture (JV). The ten projects of the JV are independent of each other, and the uncertainty of each individual project is identical, that is, the profitability of each individual project has the expected value of 500,000USD and the standard deviation of 1,500,000 USD. 5. What is the expected value of the investor's 10% stake in JV's profit? O 50,000 USD O 500,000 USD O 5,000,000 USD O Cannot be computed from the information provided 6. What is the standard deviation of the investor's 10% stake in JV's profit

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