Imagine an investor was considering an investment, and there are 3 economic conditions: • Expanding, Neutral, or Deteriorating • Assume there is a 25% probability the economy is expanding, a 50% probability the economy is neutral, and a 25% economy is deteriorating • Imagine that if the economy is expanding the investment will return 4%, if the economy is neutral it'll return 10%, and if the economy is deteriorating it will return 2%. 1. What is the Expected Return on this investment? 2. What is the Standard Deviation?
Imagine an investor was considering an investment, and there are 3 economic conditions: • Expanding, Neutral, or Deteriorating • Assume there is a 25% probability the economy is expanding, a 50% probability the economy is neutral, and a 25% economy is deteriorating • Imagine that if the economy is expanding the investment will return 4%, if the economy is neutral it'll return 10%, and if the economy is deteriorating it will return 2%. 1. What is the Expected Return on this investment? 2. What is the Standard Deviation?
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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