Suppose that your estimates of the possible one-year returns from investing in the common stock of the A. A. Eye-Eye Corporation were as follows: Probability of occurrence 0.1 0.2 0.4 0.2 0.1 Possible return -10% 5% 20% 35% 50% a. What are the expected return and standard deviation? b. Assume that the parameters that you just determined [under Part (a)] pertain to a normal probability distribution. What is the probability that return will be zero or less? Less than 10 percent? More than 40 percent? (Assume a normal distribution.)
Suppose that your estimates of the possible one-year returns from investing in the common stock of the A. A. Eye-Eye Corporation were as follows: Probability of occurrence 0.1 0.2 0.4 0.2 0.1 Possible return -10% 5% 20% 35% 50% a. What are the expected return and standard deviation? b. Assume that the parameters that you just determined [under Part (a)] pertain to a normal probability distribution. What is the probability that return will be zero or less? Less than 10 percent? More than 40 percent? (Assume a normal distribution.)
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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![Suppose that your estimates of the possible one-year returns from investing in the
common stock of the A. A. Eye-Eye Corporation were as follows:
Probability of occurrence
0.1
0.2
0.4
0.2
0.1
Possible return
-10%
5%
20%
35%
50%
a. What are the expected return and standard deviation?
b. Assume that the parameters that you just determined [under Part (a)] pertain to a
normal probability distribution. What is the probability that return will be zero or less?
Less than 10 percent? More than 40 percent? (Assume a normal distribution.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a5147f7-2b6d-4f0f-8693-d12c0270d66d%2F1b46ebb3-6a01-484b-b78f-17233284cce2%2Fi4wccin_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that your estimates of the possible one-year returns from investing in the
common stock of the A. A. Eye-Eye Corporation were as follows:
Probability of occurrence
0.1
0.2
0.4
0.2
0.1
Possible return
-10%
5%
20%
35%
50%
a. What are the expected return and standard deviation?
b. Assume that the parameters that you just determined [under Part (a)] pertain to a
normal probability distribution. What is the probability that return will be zero or less?
Less than 10 percent? More than 40 percent? (Assume a normal distribution.)
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