Question
A mutual fund tries to promote their portfolio to you. They claim that, in the next year, their portfolio has a rate of return of
A mutual fund tries to promote their portfolio to you. They claim that, in the next year, their portfolio has a rate of return of 2.5% with probability 0.4 and 7.5% with probability 0.6. What is the standard deviation (in %) of the rate of return of their portfolio?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
7th Edition
0072866578, 9780072866575
