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would be 20%. (1.4) Our policy is to buy assets if their expected return is not lower than and at the same time the standard deviation of the return is not higher b than o. Assume that the future prices of stock will be 60 with probability S(1) = 80 with probability 90 with probability For what current price S(0) should we buy the asset if (a) = 10%, 6 = 0.2, (b) A = 20%, o = 0.15, (c) u = 25%, o = 0.1