For the same economic state probability distribution in Problem, determine the standard deviation of the expected return.
Question:
For the same economic state probability distribution in Problem, determine the standard deviation of the expected return.
In Problem, Compute the expected return given these three economic states, their likelihoods, and the potential returns:
DistributionThe word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Question Posted: