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Paulie invested $60,000 in ABC Corp. and $40,000 in DEF Corp. the return percentages of ABC Corp. and DEF Corp. will vary as shown in
Paulie invested $60,000 in ABC Corp. and $40,000 in DEF Corp. the return percentages of ABC Corp. and DEF Corp. will vary as shown in the information below:
State of Economy | Probability of State | ABC Return | DEF Return |
Boom | 30% | 10% | 8% |
Good | 20% | 8% | 8% |
Poor | 30% | 6% | 7% |
Bust | 20% | -8% | 7% |
What is the expected return of Paulies investment?
Group of answer choices
6.95%
5.42%
5.88%
9.12%
Same facts as above: what is the standard deviation of Paulie's investment?
Group of answer choices
0.17%
3.04%
2.68%
4.09%
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