Question: 5 Caculation question: (1) Company A owns a swimming pool near to a major seaside resort town. Holidaymakers boost the turnover of this firm when
5 Caculation question: (1) Company A owns a swimming pool near to a major seaside resort town. Holidaymakers boost the turnover of this firm when they are unable to use the beach on cold and wet days. Thus company A's returns are best when the weather is poor. The returns on the shares are shown in the table below, together with the probability of when a particular weather "even" may occur. (5 points each) Event Hot weather Modestly warm Cold weather Total Probability 0.2 0.6 02 1.0 Returns on share in company A(%) 5 15 20 (a) The expected return for a share in company A? (b) The standard deviation of a share in company A
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