QUESTION 5
Return | Probability |
-1.5% | 0.2 |
20.2% | 0.3 |
-6.3% | 0.3 |
23.3% | 0.2 |
Ans 13.061
Probability (P) | RETURN (Y) | (P * Y ) | P * (Y -Average Return of Y)^2 | |
20% | -1.5 | -0.30 | 20.1202 | |
30% | 20.2 | 6.06 | 40.8567 | |
30% | -6.3 | -1.89 | 65.9787 | |
20% | 23.3 | 4.66 | 43.6306 | |
TOTAL | 8.53 | 170.5861 | ||
Expected Return = | (P * Y) | |||
8.53% | ||||
VARIANCE = | P * (Y -Average Return of Y)^2 | |||
170.5861 | ||||
Standard Deviation = | Square root of (P * (Y -Average Return of Y)^2) | |||
Square root of 170.5861 | ||||
13.061 |
QUESTION 5 After extensive research, you believe the probability distribution for next year's return on FB...
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