a) Expected Return = 0.4*-4% + 0.6*12% = 5.6%
b) Standard Deviation = (.4*(-4%-5.6%)2
+0.6*(12%-5.6%)2)0.5 = 7.84%
c) The Stocks results show that the variation or standard deviation
is higher with the required rate.
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Please show work and formulas. Problem 2: You are given the following probability distribution for a...
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