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1)Please define the term standard deviation

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1)Please define the term standard deviation. And why do you think we can use standard deviation to measure risk?

2)Consider the following information for two all-equity firms, Firm A and Firm B: Firm A Firm B Shares outstanding 2,400 7,200 Price per share $48 $36 Firm A estimates that the value of the synergistic benefit from acquiring Firm B is $7,020. Firm B has indicated that it would accept a cash purchase offer of $42 per share. Should Firm A proceed? (Find NPV of a merger)