i chro e File Edit View History Bookmarks Profiles Tab Window Help t MonApr310220PM . . . PG Campus X . Unit 8 Lab Assignn X 1' Do Homework - U! x '9 Unit 8 Lab Quiz x '22; Anal Downpour Wi X + (- C' i mylab.pearson.com . . ' 'r ' Ell'i .i :7;Lli : ,7' "I . [3 it} Hi I] . PG Campus 9 Sir W. Arthur Lewi... FREE Digital Down... 9 My Best Buy Cre... T-Mobile l erting Center Tut... d' TikTok de noeherd... (2) How to Create... MT217 Finance Christopher Williams 04/03/2310:20 PM 83 Submit quiz This quiz: 40 point(s) possible QUIZ: Umt 8 Lab QUIZ Question 2 Of 20 This question: 2 point(s) possible [15] (Related to Checkpoint 8.2) (Computing the standard deviation for an individual investment) James Fromholtz is considering whether to invest in a newly formed investment fund. The fund's investment objective is to acquire home mortgage securities at what it hopes will be bargain prices The fund sponsor has suggested to James that the fund's performance will hinge on how the national Skip economy performs in the coming year. Specically, he suggested the following possible outcomes: g . to Main a. Based on these potential outcomes, what is your estimate of the expected rate of return from this investment opportunity? content b. Calculate the standard deviation in the anticipated returns found in part a. c. Would you be interested in making such an investment? Note that you lose all your money in one year if the economy collapses into the worst state or you double your money if the economy enters into a 0 rapid expansion. O a. The expected rate of return from this investment opportunity is %. (Round to two decimal places) O b. The investment's standard deviation is %. (Round to two decimal places) c. Would you be interested in making such an investment? (Select the best choice below.) 0 5:3 A. Your interest in making such an investment would depend on your risk tolerance. If you do not like risk you should avoid this investment, however if you do not mind risk you may want to make this investment. n e) Nonsense-in- til-E: =5? i Excel File Edit View Insert Format Tools Data Window Help 5' t MonApr310225PM ' PG Campus X Unit 8 Lab Assignr X '9 Do Homework U X '9 Unit 8 Lab Quiz X "Z: Anal Downpour W X + i coursehero.co 9' ~ :7, ' .wn- w o o AutoSave cm a data-4_3_2023-10_22 PM Home Insert Draw Page Layout Formulas Data View Automate 9 Tell me D Comments Calibri v 11 v A A 3 General Z V 'v V v i v Z B I U (l; A O 70 .00 Conditional Format Cell i Sent! Find& Analyze _ v v $ v A] , W D Formatting asTabIe Styles \\ Filter Select Date State of Economy Rapid expansion and recovery Modest growth 0% 40% Continued recession 40% 15% Falls into depression 15% 400%