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Problem 13-21 Increasing risk over time [LO13-1] The Oklahoma Pipeline Company projects the following pattern of inflows from an investment. The inflows are spread over
Problem 13-21 Increasing risk over time [LO13-1] The Oklahoma Pipeline Company projects the following pattern of inflows from an investment. The inflows are spread over time to reflect delayed benefits. Each year is independent of the others. Year 1 Cash Inflow Probability $ 90 0.40 100 0.20 110 0.40 Year 5 Cash Inflow Probability $ 80 0.35 100 0.30 120 0.35 Year 10 Cash Inflow Probability $ 70 0.30 100 0.40 130 0.30 The expected value for all three years is $100. Compute the standard deviation for each of the three years. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Standard Deviation Year 1 Year 5 Year 10
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