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The investment portfolio of a large insurance company has the following three equally likely outcomes: 6%, 18%, and 33%. Calculate the expected return and the
The investment portfolio of a large insurance company has the following three equally likely outcomes: 6%, 18%, and 33%. Calculate the expected return and the standard deviation of the rate of return for this portfolio. Round your answers to the nearest tenth of a percent.
A) E(r) = 14.3%; Sdv(r) = 0%
B) E(r) = 28.5%; Sdv(r) = 19.1%
C) E(r) = 19.0%; Sdv(r) = 0%.
D) E(r) = 19.0%; Sdv(r) = 11.0%.
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