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Unformatted text preview: Step 2 For each outcome (row), subtract the expected return from the individual return outcome (see Table 5.5, pg. 203 to see this worked for you). Step 3 Square the differences from Step 2. Step 4 Multiply the squared differences from Step 3 by the associated probabilities. Step 5 Sum the products from Step 4. Step 6 Take the square root of the sum from Step 5. On HP 10-BII calculator, when number is in display, use SHIFT and the [ - ] key to get the square root....
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This note was uploaded on 02/29/2012 for the course BUS 332 taught by Professor Johnzietlow during the Spring '12 term at Malone.
- Spring '12