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You are given the following data about expected returns on a Bank security on the LUSE where different states of the economy have the same

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You are given the following data about expected returns on a Bank security on the LUSE where different states of the economy have the same probability of occurrence: Compute and fully interpret the following for the investment: a) The Expected return for the security. [5 Marks] b) The volatility of the security returns using the standard deviation. [6 Marks] c) The Sharpe ratio of the returns assuming a risk-free rate of 10%. [4 Marks] d) Which one of the two securities would you recommend to invest in and why? [5 Marks] Total 20 Marks You are given the following data about expected returns on a Bank security on the LUSE where different states of the economy have the same probability of occurrence: Compute and fully interpret the following for the investment: a) The Expected return for the security. [5 Marks] b) The volatility of the security returns using the standard deviation. [6 Marks] c) The Sharpe ratio of the returns assuming a risk-free rate of 10%. [4 Marks] d) Which one of the two securities would you recommend to invest in and why? [5 Marks] Total 20 Marks

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