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The following table shows the probability distributions of Reynolds at the end of next year. Return Probability Reynolds 0.2 -18% 0.4 15% 0.3 24% 0.1
- The following table shows the probability distributions of Reynolds at the end of next year.
| Return |
Probability | Reynolds |
0.2 | -18% |
0.4 | 15% |
0.3 | 24% |
0.1 | 33% |
- Calculate the expected return and standard deviation for Reynolds.
- Draw the probability distribution of Reynolds, assuming the returns follow normal distribution. Indicate the area at which 2/3 of the time the returns of Reynolds would fall into.
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