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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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