Question: The expected value and the standard deviation of returns for asset A is ________. (See below.) Asset A possiable outcomes probability return (%) pessimistic 0.25

The expected value and the standard deviation of returns for asset A is ________. (See below.)

Asset A

possiable outcomes probability return (%)

pessimistic 0.25 10

most likely 0.45 12

optimistic 0.30 16

Select one:

a. 12.7 percent and 2.3 percent

b. 12.7 percent and 4 percent

c. 12 percent and 2.3 percent

d. 12 percent and 4 percent

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!