A stock will provide a rate of return of either -20 or, Ask an Expert

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A stock will provide a rate of return of either -20% or +30%.

a. If both possibilities are equally likely, calculate the expected return and standard deviation. (Do not round intermediate calculations. Round your answers to 1 decimal place.)

Expected return %

Standard deviation %

b. If Treasury bills yield 5% and investors believe that the stock offers a satisfactory expected return, what must the market risk of the stock be?

Market risk %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92834194

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