Question 6 (10) A security has the following returns and the associated probabilities; Return 18%...
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Question 6 (10) A security has the following returns and the associated probabilities; Return 18% Probability 25% -25% 60% 15% 15% (a) calculate the expected return for the security (b) calculate the risk of the security given the above information (2) (3) (c) Show through a diagram, the effect of diversification as more and more securities are added in a portfolio, label your graph and comment accordingly
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