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Problem 11-14 Risk and Expected Return (LO2) A stock will provide a rate of return of either -28% or 33%. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. (Do not round intermediate calculations. Enter your answers as a whole percent.)

Problem 11-14 Risk and Expected Return (LO2) A stock will provide a rate of return of either -28% or 33%. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. (Do not round intermediate calculations. Enter your answers as a whole percent.)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Problem 11-14 Risk and Expected Return (LO2) A stock will provide a rate of return of either -28% or 33%. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. (Do not round intermediate calculations. Enter your answers as a whole percent.) Expected return Standard deviation % %
Transcribed Image Text:Problem 11-14 Risk and Expected Return (LO2) A stock will provide a rate of return of either -28% or 33%. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. (Do not round intermediate calculations. Enter your answers as a whole percent.) Expected return Standard deviation % %
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