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4. Use the following table to calculate: State of the Economy Probability Projected Return Recession 10 -15% Moderate 20 0% Average 40 10% Good 20
4. Use the following table to calculate:
State of the Economy | Probability | Projected Return |
Recession | 10 | -15% |
Moderate | 20 | 0% |
Average | 40 | 10% |
Good | 20 | 15% |
Outstanding | 10 | 20% |
- The Expected rate of return on this investment
- The risk (i.e. the standard deviation) of the investment
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