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A project has a 0.7 chance of doubling your investment in a year and a 0.3 chance of halving your investment in a year. What is the standard deviation of the rate of return on this investment? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Respuesta :

abdullahfarooqi

Answer:

68.74%

Explanation:

Expected return

=0.7*100%-0.3*50%

=55%

standard deviation=(0.70*(100%-55%)^2+0.30*(-50%-55%)^2)^(1/2)

=68.74% is answer

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