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Suppose the risk-free interest rate is 3%, and the stock market will return either + 24% or and one year in the market, or(2 invest
Suppose the risk-free interest rate is 3%, and the stock market will return either + 24% or and one year in the market, or(2 invest for both years in the market a. Which strategy has the highest expected final payoff? b. Which strategy has the highest standard devlation for the final payott? c. Does holding stocks for a longer period decrease your risk? 22% each year, th each toome e ua like y Com are he following t o n es men state ges: invest one year the ns ee investment, a. Which strategy has the highest expected final payoff? The two possible outcomes for investment 1) are % or %. Enter the outcomes from a est to smallest and round toone derma place Suppose the risk-free interest rate is 3%, and the stock market will return either + 24% or and one year in the market, or(2 invest for both years in the market a. Which strategy has the highest expected final payoff? b. Which strategy has the highest standard devlation for the final payott? c. Does holding stocks for a longer period decrease your risk? 22% each year, th each toome e ua like y Com are he following t o n es men state ges: invest one year the ns ee investment, a. Which strategy has the highest expected final payoff? The two possible outcomes for investment 1) are % or %. Enter the outcomes from a est to smallest and round toone derma place
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