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Estimating returns and standard deviation of returns

Consider the use of probability analysis in estimating returns and determining the standard deviation. You may use a hypothetical situation and do the calculations or just describe the steps in the process.

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Consider the use of probability analysis in estimating returns and determining the standard deviation. You may use a hypothetical situation and do the calculations or just describe the steps in the process.

Answer:
Consider Stock X has the following probability distribution of expected future returns.
Probability ...

Solution Summary

Gives an example of estimating returns and determining the standard deviation of returns.

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