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compute the risk if the investment is held in isolation

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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Question

Given the following information, compute the risk if the investment is held in isolation.

Payoff Probability

15% .50

-8% .30

12% .20

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Follow-up Questions

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Follow-up Question

How did it become 10.21%?

As per my computation, 160.5-(7.5)x2 = 145.5.

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