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Business, 06.08.2019 20:20 Merlinemicheli4727

3. define risk and investment risk. describe standard deviation and the coefficient of variation and how they are used to develop a measure of risk for a stock. the average stock in the s& p 500 has a standard deviation in ror of 22% and a mean ror of 12%. another stock, a publicly-traded venture capital stock, vc inc., has a standard deviation in ror of 50% and a mean of 50%. which stock is riskier and explain your response using the statistics above. assuming a 12% rate of return on the stock market, a 4% risk-free rate of return, obtain the beta for the company that you analyzed in question set 1 from yahoo. interpret the beta. what would be that company’s cost of common equity based on your calculation?

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