expected return=respective return*respective probability
=(0.3*25)+(0.6*8)+(0.1*-40)=8.3%
probability | Return | probability*(Return-Expected Return)^2 |
0.3 | 25 | 0.3*(25-8.3)^2=83.667 |
0.6 | 8 | 0.6*(8-8.3)^2=0.054 |
0.1 | -40 | 0.1*(-40-8.3)^2=233.289 |
Total=317.01% |
Standard deviation=[Total probability*(Return-Expected Return)^2/Total probability]^(1/2)
=[317.01]^(1/2)
=17.80%(Approx).
Having trouble with this problem please show your calculations. thanks you !! 9. Your investment has...
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