Question
The following table shows the one-year return distribution of Startup, Inc. Probability 0.4 0.2 0.2 0.1 0.1 Return 0.4 -0.75 -0.5 -0.25 10 a. The
The following table shows the one-year return distribution of Startup, Inc.
| Probability | 0.4 | 0.2 | 0.2 | 0.1 | 0.1 |
|---|---|---|---|---|---|
| Return | 0.4 | -0.75 | -0.5 | -0.25 | 10 |
a. The expected return is?
b. The standard deviation is ?
c. Given a risk-free rate of 3%, the expected excess return is ?
d. The Sharpe ratio is ?
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To calculate the expected return standard deviation expected excess return and the Sharpe ratio we c...
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Understanding Basic Statistics
Authors: Charles Henry Brase, Corrinne Pellillo Brase
6th Edition
978-1133525097, 1133525091, 1111827028, 978-1133110316, 1133110312, 978-1111827021
