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1 poir QUESTION 3 A stock has an expected return of 15% over all states of the economy and a standard deviation of returns of 17%. What are the two next most typical returns an investor may expect? 0-32%, 32% -296, 19% O 15%, 17% (0-296, 2% ·0-296, 32%
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Answer #1

The expected Returns of a typical investor = (Expected Returns - Standard Deviation,Expected Returns + Standard Deviation)

=(15%-17%,15%+17%) = -2%,32%

Option e is correct.

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