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Your company is deciding to invest in 4 investments during the coming fiscal year an the investment analyst came up with the following Investment Rate

Your company is deciding to invest in 4 investments during the coming fiscal year an the investment analyst came up with the following

Investment Rate of Return Probability Exp.Ret. Deviation from Expectation Squared(pri)
1 -10% 0.25 (-10 -12)^2 (.25) =
2 5% 0.30 (5 - 12)^2 (030) =
3 +20% 0.25

4

+40% 0.20

TOTAL 1.00

_____

Risk = (Variance)0.5

1. The expected return is _____%

2. The Risk = _____ %

3. Based on one standard deviation the return could be as high as ____ % or as low as _____ %

4. What is the level of certainty when using only One Standard Deviation? Meaning?

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