Probabilities for 2 companies A, B under the conditions of uncertainty is given below: Product Demand Probabilities If Demand is achieved, Returns (%) A в HIGH 0.3 %100 %20 MODERATE 0.4 %15 %15 WEAK 0.3 %-70 %10 Total 1.0 Under the conditions of Normal Distribution, find the probabilities of returns within 1; within 2; within 3; within 4 standard deviations around the expected value. Discuss Risk versus Return.
Probabilities for 2 companies A, B under the conditions of uncertainty is given below: Product Demand Probabilities If Demand is achieved, Returns (%) A в HIGH 0.3 %100 %20 MODERATE 0.4 %15 %15 WEAK 0.3 %-70 %10 Total 1.0 Under the conditions of Normal Distribution, find the probabilities of returns within 1; within 2; within 3; within 4 standard deviations around the expected value. Discuss Risk versus Return.
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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Introduction
The expected return is calculated by adding the actual return and its corresponding probability function. It is denoted as ,
The variance is calculated by adding the squared difference of actual return and the expected return then multiply by its corresponding probabilities.
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