Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1/1 pt Question1 Your investment has: a 20% chance of earning a 30% rate of return, a 50% chance of earning a 10% rate of

image text in transcribed
image text in transcribed
image text in transcribed
1/1 pt Question1 Your investment has: a 20% chance of earning a 30% rate of return, a 50% chance of earning a 10% rate of return, and; a 30% chance of losing 6%. Calculate the expected return on this investment. Enter as a percentage. Thus 5% would be entered as-5" or "50" but not "S%" and not-o.os 9.2000 Prob Return P x R A 0.2 30% E( R) = 9.2% 6,0% B 0.5 10% 5.0% 0.3-6% -1.8% Question 2 0/2 pts As in the previous queestion, your investment has: a 20% chance of earning a 30% rate of return, * a 50% chance of earning a 10% rate of return, and; * a 30% chance of losing 6%. You have already calculated the expected return on this investment. Now, CALCULATE THE STANDARD DEVIATION of these returns. Enter as a percentage. Thus 5% would be entered as-5" or "50" but not-5%, and not-o.os

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Money Banking And Financial Markets

Authors: Lloyd B. Thomas

1st International Edition

0070644365, 9780070644366

More Books

Students also viewed these Finance questions

Question

What is the difference between monetari vs. Keynesian?

Answered: 1 week ago

Question

Discuss the effectiveness of a national infrastructure for HRD

Answered: 1 week ago