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A financial analyst covering Platinum Oil has determined the following four possible returns given four different states of the economy over the next period. Probability

  1. A financial analyst covering Platinum Oil has determined the following four possible returns given four different states of the economy over the next period.

    Probability Return
    0.20 -.10
    0.25 -.05
    0.45 0.2
    0.10 0.35

    Calculate the expected return and standard deviation for Platinum Oil.

    A.

    E(R)=10.00% and E(SD)=16%

    B.

    E(R)=9.25% and E(SD)=24%

    C.

    E(R)=11.50% and E(SD)=19%

    D.

    E(R)=9.25% and E(SD)=16%

    E.

    E(R)=10.00% and E(SD)=24%

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