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Use the below information to answer the following question(s). Write the answer in percentage format and round to 2nd decimal (Ex. 12.34%) You are considering
Use the below information to answer the following question(s). Write the answer in percentage format and round to 2nd decimal (Ex. 12.34%)
You are considering investing in a project with the following possible outcomes:
STATES | PROBABILITY | A | B |
BOOM | 10% | 25% | -5% |
GROWTH | 50% | 16% | 5% |
DECLINE | 30% | 2% | 15% |
DEPRESSION | 10% | -25% | 30% |
- Calculate the expected rate of return for investment B, only
- Calculate the standard deviation of returns for investment B.
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