Question: Risk can be divided into idiosyncratic risk, which is specific to a particular business or circumstance, and systematic risk, which is common to everyone. This

Risk can be divided into idiosyncratic risk, which is specific to a particular business or circumstance, and systematic risk, which is common to everyone.

This is the question that requires you to calculate the expected payoff and standard deviation of return. You must show the detailed math procedure as to how you obtain the answer clearly to qualify for credits.

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