Directions Answer the following question. The question worth 100 points. You have 15 minutes to solve the question and additional 5 minutes for uploading process. All questions shall be clearly written on paper with handwriting. Take the picture of your answer and upload all the pages at the end of the exam to your BB account Late submission will not be accepted. Write your name and ID number to each answer sheet. QUESTION The table below gives the return in various alternatives for Company XYZ. State Probability Return 0.10 -24% 1 2 0.15 3 0.20 12% 4 0.10 20% 5 0.30 27% 6 0.15 40% * Use your ID number. Example: if your ID number has four digit after the zeros, (example: 00000 9876), use all four digit (example 0.09876 or 9.876%) as the return, if your ID number five digit after the zeros (example 0000 12345), use all five digit (example 0.12345 or 12.345% as the return a Can any other states exist for Company XYZ? Explain clearly. (10 points) b. What is the expected return for Company XYZ? (30 points) c. How often would an investor who owns Company XYZ actually receive the expected return calculated in part b above? Explain clearly. 10 points) d. What is the standard deviation of the returns for Company XYZ? (50 points) Show all your calculation, show all your steps, no credit will be given without showing Directions Answer the following question. The question worth 100 points. You have 15 minutes to solve the question and additional 5 minutes for uploading process. All questions shall be clearly written on paper with handwriting. Take the picture of your answer and upload all the pages at the end of the exam to your BB account Late submission will not be accepted. Write your name and ID number to each answer sheet. QUESTION The table below gives the return in various alternatives for Company XYZ. State Probability Return 0.10 -24% 1 2 0.15 3 0.20 12% 4 0.10 20% 5 0.30 27% 6 0.15 40% * Use your ID number. Example: if your ID number has four digit after the zeros, (example: 00000 9876), use all four digit (example 0.09876 or 9.876%) as the return, if your ID number five digit after the zeros (example 0000 12345), use all five digit (example 0.12345 or 12.345% as the return a Can any other states exist for Company XYZ? Explain clearly. (10 points) b. What is the expected return for Company XYZ? (30 points) c. How often would an investor who owns Company XYZ actually receive the expected return calculated in part b above? Explain clearly. 10 points) d. What is the standard deviation of the returns for Company XYZ? (50 points) Show all your calculation, show all your steps, no credit will be given without showing