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Question 7 5 pts You are given the following information for Securities J and K for the coming year: State of Nature Probabil
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Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

A C D E State of Nature Probability 20.00% 50.00% 30.00% 2 Return) 14.00% 19.00% 16.00% 17.10% 2.02% Return K 14.00% 16.00% 2

Cell reference -

A B Ε State of Nature Probability 1 0.2 0.5 0.3 Return) 10.14 0.19 0.16 =SUMPRODUCT($C$3:$C$5,D3:D5) =SQRT(SUMPRODUCT((D6-D3:

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

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