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please answer all parts to the question! Thank you (Related to Checkpoint 8.2) (Computing the standard deviation for an individual investment) James Fromholtz is considering
please answer all parts to the question! 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 objective is to acquire home mortgage securtilis at what it hopes will be bargain prices. The fund sponsor has suggested to James that the fund's performance wil hinge on how the national economy performs in the coming year. Spocifically, he suggested the following possible outcomes: a. Based on these potential outcomes, what is your estimate of the expectod rate of retum from this investment opportunity? b. Caiculate the standard deviation in the anticipated returns found in part a. c. Would you be interested in making tuch an investment? Note thot you lose all your money in one year if the economy collapses into the worst state or you double your money it the economy enters into a rapid expansion. a. The expected rate of retum from this investment opportunity is K. (Round to two docimal places) Data table Step by Step Solution
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