Question: Please answer all yellow highlighted cells and provide all excel formulas if possible. EXPECTED RISKS, RETURNS, AND PROBABILITIES 2 Emrem Co. is launching a new
Please answer all yellow highlighted cells and provide all excel formulas if possible.

EXPECTED RISKS, RETURNS, AND PROBABILITIES 2 Emrem Co. is launching a new ventured aimed at stopping all of the pesky robo calls that cell phone 3 owners receive all day. If successful, it is expected all of the major phone OS providers will incorporate 4 this new technology. An analyst for PJ Morton has projected the following outcomes below. What is the 5 expected shareholder return for this venture? 6 7 OUTCOME Stock Return Probability Difference squared 8 Success 20% 0.54 9 Failure -5% 0.46 10 11 Expected return 12 Using SUMPRODUCT function 13 14 What is the standard deviation or risk of this venture? 15 16 Variance 17 Standard deviation 18 19 The investor wants to calculate the probability that SRP has a return greater than 8.5% next year. 20 21 Probability (return is 8.5%) 23 24 25 26
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