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A financial analyst covering Magnum Oil has determined the following four possible returns given four different states of the economy over the next period. Probability
A financial analyst covering Magnum Oil has determined the following four possible returns given four different states of the economy over the next period.
Probability | Return |
0.10 | -.20 |
0.25 | -.05 |
0.40 | 0.15 |
0.25 | 0.30 |
Calculate the expected return and standard deviation for Magnum Oil.
A. | E(R)=5.00% and E(SD)=26% | |
B. | E(R)=10.25% and E(SD)=16% | |
C. | E(R)=7.5% and E(SD)=20% | |
D. | E(R)=10.25% and E(SD)=26% | |
E. | E(R)=5.00% and E(SD)=16% |
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