Calculate the expected return risk standard deviation for


(A) Calculate the expected return risk (standard deviation) for General Fudhe for 200x, given the following information:

Probabilities 0.20 0.15 0.50 0.15

Possible outcome 20% 15% 11% -5%

(B) Suppose you had to choose between General Fudge and stock B, with expected return E(rb)= 9%, and σB= 6%. Which is preferred on a stand alone basis?

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Financial Management: Calculate the expected return risk standard deviation for
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