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Question
You are considering a security with the following possible rates of return:| Probability | Return (%) |
| 0.15 | 9.5 |
| 0.25 | 13.6 |
| 0.50 | 14.9 |
| 0.10 | 25.3 |
a. Calculate the expected rate of return.
b. Calculate the standard deviation of the returns.
Answer
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