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Rate of Return if Outcome Occurs Rate of Return if Outcome Occurs Possible Outcomes Probability Stock K Stock S Optimistic 0.30 28% 41% More Likely

Rate of Return if Outcome Occurs Rate of Return if Outcome Occurs

Possible Outcomes

Probability

Stock K

Stock S

Optimistic

0.30

28%

41%

More Likely

0.50

12%

18%

Pessimistic

0.20

-8%

-16%

What is the standard deviation for Stock K?

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