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14.    Given the following information, compute the standard deviation for Investment A:

 

                                Investment A                           

Payoff                      Probability

  20%                             0.5

  10%                             0.4

-10%                             0.1

 

                 

 

a.     81.0%

b.       5.0%

c.       9.0%

d.     17.1%

e.     None of the above is correct.

 

Solution:

 

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