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You are given the following probability distribution for a stock: (Not a multiple choice problem) Pr. Outcome. .4 -4% .6 12% A. Compute the expected

You are given the following probability distribution for a stock: (Not a multiple choice problem)

Pr. Outcome.

.4 -4%

.6 12%

A. Compute the expected return

B. Compute the standard deviation

C. Presuming the stock returns are normally distributed, what do these results indicate?

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