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Suppose the probability distribution for the one-period return of some asset is as follows: Return Probability 0.20 0.10 0.15 0.20 0.10 0.30 0.03 0.25 -0.06
Suppose the probability distribution for the one-period return of some asset is as follows:
Return | Probability |
0.20 | 0.10 |
0.15 | 0.20 |
0.10 | 0.30 |
0.03 | 0.25 |
-0.06 | 0.15 |
a. What is this assets expected one-period return?
b. What is this assets variance and standard deviation for the one-period return?
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