Your rate of return expectations for the stock of Kayleigh Cosmetics Company during the next year are: KAYLEIGH COSMETICS CO. Possible Rate of Return Probability −0.60 ............0.15 −0.30 ............0.10 −0.10 ............0.05 0.20 ............0.40 0.40 ............0.20 0.80 ............0.10 a. Compute the expected return [E(Ri)] on this stock, the variance (σ2) of this return, and its standard deviation (σ).

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Your rate of return expectations for the stock of Kayleigh Cosmetics Company during the next year are:

KAYLEIGH COSMETICS CO.

Possible Rate of Return Probability

−0.60 ............0.15

−0.30 ............0.10

−0.10 ............0.05

0.20 ............0.40

0.40 ............0.20

0.80 ............0.10

a. Compute the expected return [E(Ri)] on this stock, the variance (σ2) of this return, and its standard deviation (σ).

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