Question
Risk and Return State Pr(a) ra Pr(b) rb 1 0.2 10% 0.25 12% 2 0.6 15% 0.40 20% 3 0.2 20% 0.35 18% Given the
Risk and Return
| State | Pr(a) | ra | Pr(b) | rb |
| 1 | 0.2 | 10% | 0.25 | 12% |
| 2 | 0.6 | 15% | 0.40 | 20% |
| 3 | 0.2 | 20% | 0.35 | 18% |
Given the probability distribution above, determine (Calculate) and compare the:
- Expected return (means)
- Variance
- Standard deviation
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Asset Allocation From Theory To Practice And Beyond
Authors: Mark P. Kritzman, William Kinlaw, David Turkington, Harry M. Markowitz
1st Edition
1119817714, 978-1119817710
