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ANSWER ALL THE QUESTIONS CORRECTLY PLEASE 5. The probabilistic approach to calculate expected returns Investors are willing to make investments because they expect a return

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5. The probabilistic approach to calculate expected returns Investors are willing to make investments because they expect a return from doing so. As the name suggests, expected returns are not assured. Because they occur in the future, expected returns cannot be observed either, so stock analysts substitute historical realized returns in their mathematical analyses. Realized return is the name for returns that have actually been earned. Many analysts use past realized returns to both predict future performance and to estimate the riskiness of the asset. Realized returns on Golden Fish Foodstuffs, Inc, are given in the following table: The average realized return on Golden Fish Foodstuffs, Inc.'s stock from 2013 to 2017 was Based on economic conditions, you compiled the following information with estimates of returns from Golden Fish Foodstuffs, Inc.'s stock and the probabilities associated with the economic condition for the next year: The average realized return on Golden Flsh Foodstuffs, Inc.'s stock from 2013 to 2017 was Based on economic conditions, you complied the following information with estimates of returns from Golden Fish Foodstuffs, Inc's stock and the probablities associated with the economic condition for the next year: Using this information, calculate the standard deviation of returns from Golden Fish Foodstuffs, Inci's stock. 1,397.92% 66.36% 37.39% 6.12% Anaiysts and finance professionals often use the historical standard deviation to calculate estimates of the future variability, An important disclaimer in their analys/s, however, always states that past performance is not a guarantee of future results. Thus, it is important to understand that the average realized rate of return (r) should not be used as the expected rate of return (r^)

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