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need help working through the rest of this question, all parts, thank you. (Related to Checkpoint 8.2) (Computing the standard deviation for an individual investment)
need help working through the rest of this question, all parts, thank you.
(Related to Checkpoint 8.2) (Computing the standard deviation for an individual investment) James Fromholtz is considering whether to invest in a newly formed investment fund. The fund's investment objoctive is to acquire home mortgage socurities at what it hopes will be bargain prices. The fund sponsor has suggested to James that the finds performance wal hinge on how the national econorry performs in the coming year. Specifically, he suggested the following possible culcomes: a. Based on these potential outcomes, what is your estimate of the expected rate of retum from fin investment opportunity? b. Calculate the standard deviation in the anticipated reburns found in part a c. Would you be interested in making such an investment? Note that you lose all your money in one year if the econony collepses into the wont state or you double your money if the economy enters into a rapid expansion. a. The expected rate of return from this investmert opportunity is 21% (Round to two decimal placeet) b. The investmerrs standard deviation is 6. (Round to two decinal places) Data table Step by Step Solution
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