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Suppose you have two stocks: Stock E(R) Variance (^2) Standard Deviation () IBM 10% 0.04 20% Google 10% 0.09 30% It is more likely that
Suppose you have two stocks:
Stock | E(R) | Variance (^2) | Standard Deviation () |
IBM | 10% | 0.04 | 20% |
| 10% | 0.09 | 30% |
It is more likely that google will have a return that is worse than -20%.
TRUE or FALSE? Please explain why.
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