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The table below shows possible values in one year, V1 , with associated probabilities, p(V1) , for two securities that both have present value, V0

The table below shows possible values in one year, V1

, with associated probabilities, p(V1)

, for two securities that both have present value, V0

What is the expected return on investment with the lowest risk?

image text in transcribed
ALFA BETA p(V) V P(V) V 30% 70 20% 70 40% 120 70% 120 30% 170 10% 180

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