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Problem:

Freedman Flowers' stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of producing a ?28% return.

Question 1: Calculate is the firm's expected rate of return?

Question 2: Calculate is the firm's expected standard deviation?

Note: Please show how to work it out.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91148897

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