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Share X and Share Y have the following returns with their respective probabilities. Share X Share Y Return Probability Return Probability 10% 0.3 15% 0.3
Share X and Share Y have the following returns with their respective probabilities. Share X Share Y Return Probability Return Probability 10% 0.3 15% 0.3 5% 0.3 1% 0.4 -4% 0.4 -10% 0.3 Calculate the following: i) The expected rate of returns for both shares. (4 marks) ii) The standard deviation for both shares. (5 marks) iii) On a stand-alone basis, select which stock is the riskier
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