The following table shows the one-year return distribution of Startup, Inc.
 

 

Probability	0.4	0.2	0.2	0.1	0.1
Return	0.4	-0.75	-0.5	-0.25	10

 

a. The expected return is?

b. The standard deviation is ?

c. Given a risk-free rate of 3%, the expected excess return is ?

d. The Sharpe ratio is ?

Answer rating: 100% (QA)

To calculate the expected return standard deviation expected excess return and the Sharpe ratio we c... View the full answer