Question: We know for certain that a particular asset can have the following outcomes the coming year with the given probabilities Probability Return 10% -10% 15%
We know for certain that a particular asset can have the following outcomes the coming year with the given probabilities
| Probability | Return |
|---|---|
| 10% | -10% |
| 15% | -3% |
| 50% | 8% |
| 15% | 11% |
| 10% | 15% |
a. What is the asset's expected return? Answer in percentage form with two decimals (i.e. 23.45%. not 0.2345).
%
b. What is the asset's volatility? Answer in percentage form with two decimals (i.e. 23.45%, not 0.2345).
%
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