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3. Robin Universal Corporation is planning to invest in a security that has several possible rates of return. Given the following probability distribution of returns, what is the expected rate of return on the investment? Also, compute the standard deviations of the returns. What do the resulting numbers represent? Probability Return 0.10 -10% 0.20 5% 0.30 10%

3. Robin Universal Corporation is planning to invest in a security that has several possible rates of return. Given the following probability distribution of returns, what is the expected rate of return on the investment? Also, compute the standard deviations of the returns. What do the resulting numbers represent? Probability Return 0.10 -10% 0.20 5% 0.30 10%

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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3. Robin Universal Corporation is planning to invest in a security that has several possible rates of return. Given the following probability distribution of returns, what is the expected rate of return on the investment? Also, compute the standard deviations of the returns. What do the resulting numbers represent? Probability Return 0.10 -10% 0.20 5% 0.30 10% 0.40 25%
Transcribed Image Text:3. Robin Universal Corporation is planning to invest in a security that has several possible rates of return. Given the following probability distribution of returns, what is the expected rate of return on the investment? Also, compute the standard deviations of the returns. What do the resulting numbers represent? Probability Return 0.10 -10% 0.20 5% 0.30 10% 0.40 25%
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