An investment will cost $1,500 today. You have estimated the following probability distribution for the value...
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An investment will cost $1,500 today. You have estimated the following probability distribution for the value of the investment one year from now: Probability 30% 60% 10% Value at the end of the year $1,680 $1,650 $1,425 Calculate the expected rate of return and the standard deviation of the returns for the 1-year holding period. An investment will cost $1,500 today. You have estimated the following probability distribution for the value of the investment one year from now: Probability 30% 60% 10% Value at the end of the year $1,680 $1,650 $1,425 Calculate the expected rate of return and the standard deviation of the returns for the 1-year holding period.
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To calculate the expected rate of return for the 1year holding period we need to multiply each possi... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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