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We know for certain that a particular asset can have the following outcomes the coming year with the given probabilities Probability Return 15% -12% 10%
We know for certain that a particular asset can have the following outcomes the coming year with the given probabilities
Probability | Return |
---|---|
15% | -12% |
10% | -2% |
40% | 8% |
20% | 10% |
15% | 17% |
a. What is the asset's expected return? Answer in percentage form with two decimals (i.e. 23.45%. not 0.2345)
b. What is the asset's volatility? Answer in percentage form with two decimals (i.e. 23.45%, not 0.2345).
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