Probability Returns0.150.202.0.350.200.108.65Based on the above information, what is the risk (standard deviations) ?2.943,9210%8,6812%15%17%20%

To calculate the standard deviation of a probability distribution, we first need to calculate the…

Answered: Probability 0.15 0.20 2.0.35 0.20 0.10…

Probability 0.15 0.20 2.0.35 0.20 0.10 8.65 2.94 Based on the above information, what is the risk (standard deviations)? 3,92 Returns 8,68 10% 12% 15% 17% 20%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 1PROB

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Concept explainers

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.

Question

Probability Returns
0.15
0.20
2.0.35
0.20
0.10
8.65
Based on the above information, what is the risk (standard deviations) ?
2.94
3,92
10%
8,68
12%
15%
17%
20%

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