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Calculate the standard deviation of the two assets in Exercises 1 and 2 and explain how you can use the standard deviation to tell which asset is riskier.

Exercises 1
Calculate the expected return on an asset that has the following probable returns:

2213_Table 1.jpg

Exercises 2
If you compare the asset in Exercise 1 to the following asset, can you quickly tell which one is riskier?

1703_Table 2.jpg

Financial Management, Finance

  • Category:- Financial Management
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