Question: 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

 Related to Checkpoint 8 2 (Computing the standard deviation for an
individual investment) James Fromholtz is considering whether to invest in a newly

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 funds investment objective is to acquire home mortgage securities at what it hopes will be bargain prices. The fund sonoras suggested to James that the fund's performance withinge on how the national com performs in the coming year Specially, he suggested the following possible outcomes Bused on the potential outcomes, what is your estimate of the expected role of return from this investment opportunity? D. the standard the anticipated found in c. Would you be interentod in making such an rivestiment? Not that you lose all your monny in one year if the economy collapses into the west state or you toutilo your money the economy enters indo a rasion The expected rahoi ot robum from this investment opportunity ul. Round to two duomad place) b. The investmunte standard deviation as found to two decimal places) 6. Would you be interested in making such an estimat? (Select the best choice holow OAV I would be noted in making such an intent The economy is mostly to begin a rapid on andro No I would not be tested in making such an investment. The economy is mostly or into a dression Theo - X for Irfor Data table 2) (Computing to equire home mort aming year. Spec outcomes, what Heviation in the an in making such a bub State of Economy Probability Rapid expansion and recovery 5% Modest growth 35% Continued recession 55% Falls into depression (Click on the icon in order to copy its contents into a spreadsheet) Fund Returns 100% 40% 10% - 100% 5% urn from this inver d deviation is in making such a Print Done ested in making terested in makina such an investment. The economy is most likely to sink into a depression Time

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