An investment opportunity will pay 10 with a 20 probability
An investment opportunity will pay $10 with a 20% probability, $20 with a 40% probability, $30 with a 30% probability, and $40 with a 10% probability. what is the standard deviation of the investment?
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Cases in Engineering Economy 2nd by Peterson & Eschenbach
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Michael makes a great point. Economists often note that there is no such thing as a free lunch
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