Calculate the standard deviation probability return 1 0.4 -80% -0.32 2 0.2 -75% -0.15 3 0.2 -40%
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Question:
| probability | return | ||
| 1 | 0.4 | -80% | -0.32 |
| 2 | 0.2 | -75% | -0.15 |
| 3 | 0.2 | -40% | -0.08 |
| 4 | 0.1 | -25% | -0.025 |
| 5 | 0.1 | 1000% | 1 |
| 1 | 780% | 43% | |
| expected return is 43% |
Expert Answer:
To calculate the standard deviation of returns you first need to calculate the variance and then ... View the full answer
Related Book For 
Understanding Basic Statistics
ISBN: 9781111827021
6th Edition
Authors: Charles Henry Brase, Corrinne Pellillo Brase
Posted Date:
