Question: Please show work and formulas. Problem 2: You are given the following probability distribution for a stock: Pr. Outcome .4 .6 A. Compute the expected
Problem 2: You are given the following probability distribution for a stock: Pr. Outcome .4 .6 A. Compute the expected return B. Compute the standard deviation C. Presuming the stock returns are normally distributed, what do these results indicate? -4% 12%
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