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Explain the problem of unknown risks for financial

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Explain the problem of unknown risks for financial instruments in furthering the 2007-2009 financial crisis.

Stocks offer an expected return of 20%, with a standard deviation 22%. Silver offers an expected return of 12% with a standard deviation of 30%. In light of the apparent inferiority of silver with respect to both mean return and volatility, why would anyone hold silver?

Reference no: EM132769675

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