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FIN220 Question 3. You are contemplating making a $9,000 investment that would have the following possible outcomes in cash flow each year. What is the
FIN220 Question 3. You are contemplating making a $9,000 investment that would have the following possible outcomes in cash flow each year. What is the expected value of the future cash flows and the expected rate of return? Probability 0.4 0.3 0.4 Cash Flow (S) 650 925 1,500 Question 4. Using the future cash flows and expected returns from the above question, now let's calculate the standard deviation of the returns. The probabilities of possible returns are; Probability 0.4 Returns (%) 7.2% 0.3 10.3% 0.4 16.7%
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