Question: Yield and deviation 1. Calculate Yield Buy a security with a starting price of $ 100, which will pay you $ 7 in cash as

 Yield and deviation 1. Calculate Yield Buy a security with a

Yield and deviation 1. Calculate Yield Buy a security with a starting price of $ 100, which will pay you $ 7 in cash as a dividend at the end of the period and will be worth $ 106 a year later. The yield would be ($ 7+ $ 6)/$ 100, use the following formula. R = Dividend payment + (future value - initial price) / initial price Di + (P, Pt-1) R = P-1 2. Complete the following table, calculating the expected Return and Standard Deviation based on the given Ri and Pi. Clculo de Clculo de Varianza o Rendimiento Desviacin Esperado Estndar Rendimiento Probabilidad de Posible, Ri Ocurrencia, Pi -0.10 0.13 -0.02 0.08 0.04 0.25 0.09 0.10 0.14 0.09 0.20 0.25 0.28 0.10 Total 1.00 Total Total n = (R;W[P;) i=1 Mathematical Representation of Expected Performance 0= (R; R)? (P;) i=1 Mathematical representation of the standard deviation Yield and deviation 1. Calculate Yield Buy a security with a starting price of $ 100, which will pay you $ 7 in cash as a dividend at the end of the period and will be worth $ 106 a year later. The yield would be ($ 7+ $ 6)/$ 100, use the following formula. R = Dividend payment + (future value - initial price) / initial price Di + (P, Pt-1) R = P-1 2. Complete the following table, calculating the expected Return and Standard Deviation based on the given Ri and Pi. Clculo de Clculo de Varianza o Rendimiento Desviacin Esperado Estndar Rendimiento Probabilidad de Posible, Ri Ocurrencia, Pi -0.10 0.13 -0.02 0.08 0.04 0.25 0.09 0.10 0.14 0.09 0.20 0.25 0.28 0.10 Total 1.00 Total Total n = (R;W[P;) i=1 Mathematical Representation of Expected Performance 0= (R; R)? (P;) i=1 Mathematical representation of the standard deviation

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