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6. Consider the following probability distribution of returns for a proposed project that involves a new ultrasound machine: State of the Probability of J
6. Consider the following probability distribution of returns for a proposed project that involves a new ultrasound machine: State of the Probability of J Economy Occurrence Very poor 0.10 Poor 0.20 Average 0.40 Good 0.20 Very good 0.10 Rate of Return a. What is the expected rate of return on the project? (2 Points) b. What is the project's standard deviation of returns? (2 Points) c. In what situation is this risk relevant? (1 Point) -10.0% 0.0 10.0 20.0 30.0
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