The following information is available about Henson Manufacturing Co.: Probability Return on Investment 0.15.....................5% 0.25...................15% 0.35...................22% 0.15...................30%

Question:

The following information is available about Henson Manufacturing Co.:

Probability Return on Investment

0.15……….....................5%

0.25………...................15%

0.35………...................22%

0.15………...................30%

0.10………...................40%

Compute Henson’s expected return and standard deviation.

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...

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