Question: ( Expected return and risk ) Universal Corporation is planning to invest in a security that has several possible rates of return. Given the probability
(Expectedreturn andrisk) Universal Corporation is planning to invest in a security that has several possible rates of return. Given the probability distribution of returns what is the expected rate of return on the investment? Also compute the standard deviation of the returns. What do the resulting numbers represent?
A.The expected rate of return on the investment is %????(Round to two decimal places.)
B. The standard deviation of the returns is %??? Round to two decimal points
(Round to two decimal places.)
PROBABILITY:
0.15
0.25
0.35
0.25
Return:
-5%
0%
5%
15%
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