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The following table is the yearly return of XYZ co. in different market scenerio under assigned probability. MARKET RETURN(%) PROBABILITY BAD 10 25% NORMAL 12
The following table is the yearly return of XYZ co. in different market scenerio under assigned probability.
MARKET | RETURN(%) | PROBABILITY |
BAD | 10 | 25% |
NORMAL | 12 | 50% |
GOOD | 14 | 25% |
a. Find the expected value of the yearly return of XYZ co.
b. Find the risk measure of the company through standard deviation of the return.
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