Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you explain?I am getting different numbers from provided answer 5. Assume that an investment is forecasted to produce the following returns: a 20% probability

image text in transcribed

Can you explain?I am getting different numbers from provided answer

5. Assume that an investment is forecasted to produce the following returns: a 20% probability of a 12% return; a 50% probability of a 16% return; and a 30% probability of a 19% return What is the standard deviation of return for this investment? A) 5.89% B) 16.1% C) 2.43% D) 15.7% Answer: C

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_2

Step: 3

blur-text-image_3

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

Finance Accumulation And Monetary Power

Authors: Daniel Woodley

1st Edition

0367338556, 978-0367338558

More Books

Students also viewed these Finance questions

Question

Explain the nature of human resource management.

Answered: 1 week ago

Question

Write a note on Quality circles.

Answered: 1 week ago

Question

Describe how to measure the quality of work life.

Answered: 1 week ago