Question 1 (1 point)

How do you find the Expected Return (E(r)) for an investment for which the possible future outcomes have been projected?

Question 1 options:

	You add the possibilities together and divide by the number of possibilities to get the average
	You multiply the projected return by its probability and add all of these together to calculated a weighted average of the projected returns

Question 2 (1 point)

Calculate the expected return for an investment that has experiences the following returns:

1 year ago 2.7%

2 years ago 6.6%

3 years ago-4.1%

Your Answer:

Question 2 options:

Answer	units

Question 3 (1 point)

Calculate the Expected Return (E(r)) for an investment with the following scenarios predicted:

Boom economy3.1%, Probability of 20%

Normal economy 12.6% Probability of 60%

Recession-3.3% Probability of 20%

Your Answer:

Question 3 options:

Answer	units

Question 4 (1 point)

Calculate thestandard deviationfor an investment that has experienced the following returns:

1 year ago 14.8%

2 years ago 7.8%

3 years ago-0.9%

Your Answer:

Question 4 options:

Answer	units

Question 5 (1 point)

Calculate the standard deviationfor an investment with the following scenarios predicted:

Boom economy15.9%, Probability of 20%

Normal economy 16.9% Probability of 60%

Recession-2.0% Probability of 20%

Your Answer:

Question 5 options:

Answer	units