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fast please An investment fund in Turkey uses scenario analysis to estimate the expected return and expected risk of Tupra ( a company whose stock
fast please
- An investment fund in Turkey uses scenario analysis to estimate the expected return and expected risk of Tupra ( a company whose stock trades in Borsa Istanbul). The fund identifies 4 different possible states for the next six months and estimate the following four expected returns for Vestel also assigning a probability to each state.
State Expected Return in 6 months Probability
Very Good 40% 0.1
Good 25% 0.2
Mediocre 10% 0.5
Bad - 10% -
Note: You must find the probability of the bad state using basic statistical theory
- Find the expected return of Vestel
- Find the expected variance of Vestel and the standard deviation of Vestel
- Find the correlation coefficient of Vestel
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