Question: Risk and return calculation class activity. Using the following information calculate the expected return and standard deviation of the investment. Scenario Probability Return (%) Worst

Risk and return calculation class activity.

Using the following information calculate the expected return and standard deviation of the investment.

Scenario

Probability

Return (%)

Worst case

0.4

10

Normal case

0.2

15

Best case

0.4

20
  1. Expected return.
  2. Standard deviation.

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