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You are given the following probability distribution for a stock: Pr. Outcome .4 -4% .6 12% A. Compute the expected return B. Compute the standard

You are given the following probability distribution for a stock: 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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