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Suppose Treasuries yield 5% and the returns for an equity (risky) investment are: Probability Return 0.05 +50% 0.25 +30% 0.40 +10% 0.25 10% 0.05 30%
Suppose Treasuries yield 5% and the returns for an equity (risky) investment are:
Probability | Return |
0.05 | +50% |
0.25 | +30% |
0.40 | +10% |
0.25 | 10% |
0.05 | 30% |
Calculate Standard Deviation?
Calculate Expected Return?
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