Question: Consider two scenarios, with probability and we with probability. Suppose that the return on some security is K = -2% in the first scenario

Consider two scenarios, with probability and we with probability. Suppose that the return on some security is K = -2% in the first scenario and K =8% in the second scenario. If the return on another security is K= -4% in the first scenario, find the return K22 in the other scenario such that the two securities have the same risk.

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