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Question 24 (5 points) Saved Compute the st. deviation of the following investment. Estimated Return Probability Optimistic 20.00 0.20 Most Likely 15.00 0.60 Pessimistic 5.00

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Question 24 (5 points) Saved Compute the st. deviation of the following investment. Estimated Return Probability Optimistic 20.00 0.20 Most Likely 15.00 0.60 Pessimistic 5.00 0.20 4.20% 4.30% 4.45% 4.90% 24.00% Question 25 (5 points) Please explain the meaning behind your answer from the previous problem, i.e. problem #24. The standard deviation (SD) tells us how much the return is deviating from the expected return. Higher SD is generally indicative of a higher risk. The standard deviation (SD) tells us how much the return is deviating from the expected return. Lower SD is indicative of a higher risk. Variance and standard deviation have nothing to do with analyzing the risk. The SD of 5.90 calculated above indicates a high-risk investment

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