Homework answers / question archive / 1)     You are considering a security with the following possible rates of return Probability Return (%) 0

1)     You are considering a security with the following possible rates of return Probability Return (%) 0

Finance

Share With

---

1)     You are considering a security with the following possible rates of return

Probability

Return (%)

0.10

8.5

0.30

12.6

0.40

14.7

0.20

22.3

 

 

 

 

 

a)      Calculate the expected rate of return

 

b)     Calculate the standard deviation of the return