Using the data from Problem 17, calculate the variance and standard deviation of the three investments, stock:

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Using the data from Problem 17, calculate the variance and standard deviation of the three investments, stock: corporate bond, and government bond. If the estimates for both the probabilities of the economy and the returns in each state of the economy are correct, which investment would you choose, considering both risk and return? Why?

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Financial Management Core Concepts

ISBN: 978-0132671033

2nd edition

Authors: Raymond M Brooks

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