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A $600 Investment Has the Following Payoff Frequency: a Quarter

Question 10

Multiple Choice

A $600 investment has the following payoff frequency: a quarter of the time it will be $0; three quarters of the time it will pay off $1000. Its standard deviation and value at risk respectively are:


A) $750; $600
B) $433; $600
C) $0; $1,000
D) $433; $1,000

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