5. The expected returns (r) and the corresponding probabilities are listed below. Calculate the mean, variance, and standard deviation for the expected returns. Show your work. r p 5 .5 7 .1 3 .4.
Q.5)
r | p | r * p | r2 * p |
---|---|---|---|
5 | 0.5 | 2.5 | 12.5 |
7 | 0.1 | 0.7 | 4.9 |
3 | 0.4 | 1.2 | 3.6 |
Mean for the expected returns is,
Variance for the expected return is,
Standard deviation for the expected return is,
Therefore,
Mean = 4.4
Variance = 1.64
Standard deviation = 1.2806
5. The expected returns (r) and the corresponding probabilities are listed below. Calculate the mean, variance,...
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