Question: Consider shock B, which has three possible returns; +50 percens, Oper- cent, &-50 porceN. The three possible rehirns are equally probable! What is the

Consider shock B, which has three possible returns; +50 percens, Oper- cent,

Consider shock B, which has three possible returns; +50 percens, Oper- cent, &-50 porceN. The three possible rehirns are equally probable! What is the expected return & standard deviation return for shock B? Probability 25 . 25 25 25 A 10 .05 -20 C .15 O 25 05 -505 . 10 -15 05 (1) Compute the expected returns to each slock. (11) Compute the standard deviation of returns for each shocks il) Compute the covariaces "bet returns on each pair of shocks.

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