Question
Mark Watt is considering making an investment in Western Holdings Ltd. He has done some research and is happy about the fundamentals of Western
Mark Watt is considering making an investment in Western Holdings Ltd. He has done some research and is happy about the fundamentals of Western Holdings Ltd. Nevertheless, he is totally unsure of what the annual return on his investment is going to be. Luckily, a friend of his father who works in a brokerage firm has provided him with the following estimates about the different probable outcomes of Western Holdings Ltd shares in the coming year. Probability Return (%) 0.15 0.20 0.30 0.25 0.10 27055 10 -5 Required: Calculate Mark Watt's Expected Rate of Return and Risk (Standard Deviation) if he invests in Western Holdings Ltd.
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