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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%

Google

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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