Question
Calculation of Standard deviation and expected return State P return (x) expected return(P*X) d = (X -10.5) d^2 pd^2 Boom 0.1 25 2.50 14.50 210.25
Calculation of Standard deviation and expected return
State | P | return (x) | expected return(P*X) | d = (X -10.5) | d^2 | pd^2 |
Boom | 0.1 | 25 | 2.50 | 14.50 | 210.25 | 21.03 |
Good | 0.4 | 15 | 6.00 | 4.50 | 20.25 | 8.10 |
Level | 0.3 | 10 | 3.00 | -0.50 | 0.25 | 0.08 |
Slump | 0.2 | -5 | -1.00 | -15.50 | 240.25 | 48.05 |
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| 10.50 |
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| 77.25 |
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Expected return | 10.50 |
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Standard deviation | sqrt of 77.25 | 8.79 |
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WHAT CALCULATION WAS USED TO GET THE LAST ROW OF NUMBERS P^2, I KNOW THE SUM 77.25 WAS FROM ADDING THE NUMBERS IN THE LAST ROW, BUT I DONT UNDERSTAND WHERE THOSE NUMBERS CAME FROM. THE 21.03, 8.10 ETC. THAT WHOLE ROW. CAN YOU PLEASE SHOW ME HOW THE CALCULATION
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