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Question
Consider the following discrete probability distributions of payoffs for 3 securities that are held in a DI's trading portfolio (payoff amounts shown are in $millions):
What are the expected returns for securities Alpha and Beta, respectively (in millions)?
A. -$248 and +$248
B. +$248 and +$248
C. -$300 and +$400
D. +$300 and -$3,300
E. none of the above
Answer
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