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1- What is the standard deviation of the returns on each company's stock (Company A, and B) (write all formulas) (5 Marks). 2- Of these

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1- What is the standard deviation of the returns on each company's stock (Company A, and B) (write all formulas) (5 Marks). 2- Of these two stocks, which is riskier? Explain why. (2 marks). Company A Company B Re o Consider the following two companies and their forecasted returns for the upcoming year: Outcome 1 Probability Return Company A 100% 3% Company B 15% 7.5% Outcome 2 Probability Return 85% 2.5%

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