Question: Expected return = summation( probability*return) = 0.1*(30) + 0.1*(14)+0.3*(11)+0.3*(20)+0.2*(45) = 22.7% Standard deviation = square root of summation( probability*(return-expected return)^2) = sqrt{ 0.1*(30- 22.7)^2 +
Expected return = summation( probability*return)
= 0.1*(30) + 0.1*(14)+0.3*(11)+0.3*(20)+0.2*(45) = 22.7%
Standard deviation = square root of summation( probability*(return-expected return)^2)
= sqrt{ 0.1*(30- 22.7)^2 + 0.1*(14-22.7)^2 +0.3 (11-22.7)^2+0.3*(20-22.7)^2+0.2*(45-22.7^2 }
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