Question
You are thinking about investing in a business started by a friend. Her research shows that if you give her $1,000, in one year you
You are thinking about investing in a business started by a friend. Her research shows that if you give her $1,000, in one year you will get back with equal probabilities either $700 or $1,400.
a. What is your expected return from this investment?
b. What is your risk (standard deviation) from this investment?
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Financial Mathematics Derivatives And Structured Products
Authors: Chan
1st Edition
9811336954, 978-9811336959
