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What Is the Expected Return on a Bond If the Return

question 109

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What is the expected return on a bond if the return is 9% two-thirds of the time and 3% one-third of the time? What is the standard deviation of the returns on this bond? Would you prefer this bond or one with an identical expected return and a standard deviation of 4.5? Why?


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Document

A written, drawn, presented, or memorialized representation of thoughts, often used as evidence or support for something.

Nonverbal Communication

The transfer of information through body language, facial expressions, gestures, and tone of voice rather than words.

Behaviors

The observable actions or responses of individuals or groups in a given context.

Communication Channel

The medium through which a message is transmitted from sender to receiver, such as email, telephone, or face-to-face.

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