Ginger Investments is analyzing the risk of a possible investment into a gingerbread house by producing two different scenarios The horrible scenario the gingerbread house would produce a before tax internal rate of return (BTIRR) of 5 , The joyful scenario the gingerbread house would produce a BTI...

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Ginger Investments is analyzing the risk of a possible investment into a gingerbread house by producing two

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Ginger Investments is analyzing the risk of a possible investment into a gingerbread house by producing two different scenarios:

The horrible scenario: the gingerbread house would produce a before-tax internal rate of return (BTIRR) of 5%,
The joyful scenario: the gingerbread house would produce a BTIRR of 18%.

Ginger Investments believes that the horrible scenario has a 32% chance of occurring, and the joyful scenario has the remaining chance.

What is the standard deviation of the BTIRRs percentage returns?

Posted Date: Jun 26, 2024 01:52 AM

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Ginger Investments is analyzing the risk of a possible investment into a gingerbread house by producing two

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