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Given below are likely returns in case of shares of Sun Ltd. And Moon Ltd. In the various economic conditions. Both shares are presently quoted at Rs. 100 per share. Economic Condition Probability Returns of Sun Ltd. (%) Returns of Moon Ltd. (%) High Growth 0.3 100 150 Low Growth 0.4 110 130 Stagnation 0.2 120 90 Recession 0.1 140 60 Compute – Expected Return and Standard Deviation for both stocks and provide your suggestion for suitable investment.
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