If treasury bills yield 35 and investors believe that the

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A stock will provide a rate of return of either −30% or +37%.
a. If both possibilities are equally likely, calculate the expected return and standard deviation. (Do not round intermediate calculations. Round your answers to 1 decimal place.)
Expected return % 
Standard deviation %
b. If Treasury bills yield 3.5% and investors believe that the stock offers a satisfactory expected return, what must the market risk of the stock b

Reference no: EM13387223

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