Question

This Question: 5 pts 4 of 12 This Quiz: 60 pts possib 3 Question Help The table here, ?, shows the one-year return distribution of Startup Inc. Calculate the: a. Expected return. b. The standard deviation of the return. a. Expected return: The expected return is %. (Round to one decimal place.) b. The standard deviation of the return. The standard deviation is %. (Round to one decimal place.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Probability Return 40% - 100% 20% - 65% 20% -60% 10% - 20% 10% 1,000% 20% Print Done

Answer 1

Ans Expected Return: 33.0%

Standard Deviation: 323.3

	Probability (P)	RETURN (Y)	(P * Y )	P * (Y -Average Return of Y)^2
	40%	-100	-40.00	7075.60
	20%	-65	-13.00	1920.80
	20%	-60	-12.00	1729.80
	10%	-20	-2.00	280.90
	10%	1000	100.00	93508.90
		TOTAL	33.00	104516.00
Expected Return =		(P * Y)
		33.0%
VARIANCE =		P * (Y -Average Return of Y)^2
		104516.0000
Standard Deviation =		Square root of (P * (Y -Average Return of Y)^2)
		Square root of 104516
		323.3