Question: Suppose Allegheny Stock has an equally likely probability of a +45% return or a -25% return.

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Question: Suppose Allegheny Stock has an equally likely probability of a +45% return or a -25% return. What are the expected return and volatility of its returns?

How do we calculate these with only the percentage probability?

Posted Date: May 18, 2024 11:12 PM

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Question: Suppose Allegheny Stock has an equally likely probability of a +45% return or a -25% return.

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