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(Related to Checkpoint 8.2) (Computing the standard deviation for an individual investment) James Fromholtz is considering whether to irvest in a newly formed investment fund.

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(Related to Checkpoint 8.2) (Computing the standard deviation for an individual investment) James Fromholtz is considering whether to irvest in a newly formed investment fund. The funds investment objective is to acouiro horro mortgage socuritios it what it hopes witt be bargain pricos. The fund sponsor tas suggested to James that the fund's performanco will hingo on how the national economy performs in the coming yoar. Specificaly, he suggested the folicwing possible outoomes. a. Based on these potential outcorres, what is your estinale of the expected rate of relum from this invesiment coportunty? b. Caloulate the standard deviation in the anticipatod roturns found in part a c. Would you be intecested in making such an investrens? Note that you lose all your money in one year if the economy collapses into the worst state or you double your money if the economy onters into a ragid expansion. a. The expected rate of retum from this investment opportunily is K. (Round to two docimal places) (Related to Checkpoint 8.2) (Computing the standard deviation for an individual investment) James Fromholtz is considering whether to irvest in a newly formed investment fund. The funds investment objective is to acouiro horro mortgage socuritios it what it hopes witt be bargain pricos. The fund sponsor tas suggested to James that the fund's performanco will hingo on how the national economy performs in the coming yoar. Specificaly, he suggested the folicwing possible outoomes. a. Based on these potential outcorres, what is your estinale of the expected rate of relum from this invesiment coportunty? b. Caloulate the standard deviation in the anticipatod roturns found in part a c. Would you be intecested in making such an investrens? Note that you lose all your money in one year if the economy collapses into the worst state or you double your money if the economy onters into a ragid expansion. a. The expected rate of retum from this investment opportunily is K. (Round to two docimal places)

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