Suppose that the value of a stock has a 10% chance of increasing by 20% and a
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Suppose that the value of a stock has a 10% chance of increasing by 20% and a 90% chance of decreasing by 15%. An investor buys 100 shares of the stock at $50 per share. What is the expected value of the investment after one year, and what is the standard deviation of the investment?
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