Homework Answers
Ans $6.4
| Probability (P) | CF (Y) | (P * Y ) | P * (Y -Average Return of Y)^2 | |
| 20% | 15 | 3.00 | 1.80 | |
| 30% | 12 | 3.60 | 10.80 | |
| 30% | 18 | 5.40 | 0.00 | |
| 20% | 30 | 6.00 | 28.80 | |
| TOTAL | 18.00 | 41.40 | ||
| Expected Return = | (P * Y) | |||
| 18.00% | ||||
| VARIANCE = | P * (Y -Average Return of Y)^2 | |||
| 41.4000 | ||||
| Standard Deviation = | Square root of (P * (Y -Average Return of Y)^2) | |||
| Square root of 41.40 | ||||
| 6.4 |
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