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Suppose there are two securities with the following CFs in Time 1 and the price of Security 1 at Time 0 is 100 CF

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Suppose there are two securities with the following CFs in Time 1 and the price of Security 1 at Time 0 is 100 CF Time 1 Probability Security 1 105 1 Security 2 50 120 0.3 0.7 a) Provide a comprehensive explanation of the two securities, outlining their expected returns and associated risks. For instance, emphasize that a higher variance indicates greater risk.

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