For the next 2 questions suppose the following holds: Suppose the security i has the following...

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For the next 2 questions suppose the following holds: Suppose the security i has the following...

For the next 2 questions suppose the following holds:

Suppose the security i has the following probability distributions:

State_i	Probability	r_i
1	0.3	-10%
2	0.7	24%

What is the expected return for security i?

		5.6%
		8.2%
		9.0%
		10.4%
		13.8%

What is the standard deviation for security i?

		9.84%
		10.58%
		13.08%
		15.58%
		16.66%

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