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You purchase a baseball card for $300 as an investment to resell in the future for a profit. The future value of the card depends
You purchase a baseball card for $300 as an investment to resell in the future for a profit. The future value of the card depends on a player's future productivity and other market conditions that are uncertain.You think there is a 20% probability that its value decreases to $50 and an 80 percent probability is increases in value to $500
a. What is the expected return of the card?
b. What is the variance of the return on the card?
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