Given the following probability distribution, compute forOutcomeProbabilityExpected Return20%10%260%15%320%20%1. the expected returna.10%b.12%С.15%d.20%2. Standard deviation of returnsа.5.50%b.6.18%C.3.16%d.10.00%

As information expected return is as follows: Probability Return Expected return A B C=A*B…

Answered: Given the following probability…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Consider the following POPULATION of returns: 5%, -4%, -3%, and 12%. What is the standard deviation of this population of returns? O A. 0.42% O B. 0.56% OC. 6.50% O D. 7.51%
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Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, r, is 18.7%; and that the coefficient of variation, CV, is 1.88, answer the following questions: a. Find the standard deviation of returns, sigma Subscript rσr. b. Calculate the range of expected return outcomes associated with the following probabilities of occurrence: (1) 68%, (2) 95%, (3) 99%.
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Please answer to question (b) is needed.
Calculate the standard deviation for the following returns: Year 2017 2018 2019 2020 Return 12.03% -8.24% 1.34% 4.55% Group of answer choices 8.4% 8.1% 7.6% 7.3%

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Given the following probability distribution, compute for Outcome Probability Expected Return 20% 10% 2 60% 15% 3 20% 20% 1. the expected return а. 10% b. 12% C. 15% d. 20% 2. Standard deviation of returns a. 5.50% b. 6.18% 3.16% 10.00% C. d.