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13 Moodle FIN 200-2 online - Financial Management Question 3 Not yet answered Question (5 Marks) CLO4 A financial analyst is concerned about the implications

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13 Moodle FIN 200-2 online - Financial Management Question 3 Not yet answered Question (5 Marks) CLO4 A financial analyst is concerned about the implications of COVID-19 on the returns from a particular stock. The analyst believes that: There is a 50% chance that the COVID-19 situation will remain unchanged next year and in this case the return will be 12% Marked out of 5.00 Flag question In the same time, it is equally likely that the situation will get: worse producing a negative return of -18%, or better producing a high return of 30%. Evaluate the value of the stock: A] expected rate of return. [2] B) standard deviation. [3] Heading 4 B 1 MacBook Pro ! @ 7 1 2 T # 3 % AT E Om de O 6 7 & 7 V 8 A Q W 99 E co R T Y g. E S D F G HT J

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