Question: 4. Use the table below to answer the following quI stions: What is the expected return on an IBM bond if the return is 4%

4. Use the table below to answer the following quI stions: What is the expected return on an IBM bond if the return is 4% when there is an economic bust, which has a 60 percent of probability to occuring, and 8% when the economy is in a boom, which has a 40 percent probability of occurring? a Rexpected PrioRi Variance? Probabillty ate (Returnyata - Respected) a Standard Davlation Estimate the Variance and Standard Deviation Oust fill in the table below) 2011 121) (5) (Bord TOTAL VARIANCE STANDARD DEVIATION a. Determine the range of your return with 68, 95 and 99 percent probability show your work in a normal distribution chart Normal Distribution Is this a risky asset? Why

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