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An investment will cost $1000 today. You have estimated the following probability distribution for the value...

An investment will cost $1000 today. You have estimated the following probability distribution for the value of the investment one year from now:                                                             
            Probability       Value at end of the year                                             
                        25%     $1,650                                                 
                        35%     $1,900                                                 
                        40%     $2,100                                                 
Calculate the expected rate of return and the standard deviation of the returns for the 1-year holding period.

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Answer #1

2 2S 65 y. 3.5- as Lease 100000 1IOCP) C3c) 2。3.06 .79 28. 65 9S 35 16.S Expa tad Ratunn (21): 93.50% 65 1 5 4 16 3 ) = 312.75 Standand dauiot

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