Q6: You are considering a security with the following possible rates of return: Probability Return (%)...

 

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Q6: 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. b. Calculate the expected rate of return. Calculate the standard deviation of the returns. (10 marks) Q6: 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. b. Calculate the expected rate of return. Calculate the standard deviation of the returns. (10 marks)

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1 Expected rate of return CP1 x R1 Pax R therefores P182 in 2 Expected rate ... View the full answer