Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

10.50

77.25

Expected return

10.50

Standard deviation

sqrt of 77.25

8.79

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Institutional Asset Management

Authors: Frank J Fabozzi, Francesco A Fabozzi

1st Edition

9811220034, 9789811220036

More Books

Students also viewed these Finance questions