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Question: A company is evaluating a security as a standalone investment. The risk-free rate of return is 5.1% per annum. The probability distribution of annual returns for the security is given in the table below:

Return	Probability
-2%	0.15
5%	0.3
7%	0.4
10%	0.15

(a) Calculate the expected return of the security.

(b) Calculate risk (standard deviation) of the security.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92795875

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