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The firm also has an alternative investment which will yield $1.6 billion over the course of the same 15-year period, with a probability of 80%,
The firm also has an alternative investment which will yield $1.6 billion over the course of the same 15-year period, with a probability of 80%, or $1.15 billion with a probability of 20%. Calculate the expected return, as well as the variance. The risk should be expressed as the standard deviation.
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