Your company is deciding to invest in 4 investments during the coming fiscal year an the investment analyst came up with the following

Investment	Rate of Return	Probability	Exp.Ret.	Deviation from Expectation Squared(pri)
1	-10%	0.25		(-10 -12)^2 (.25) =
2	5%	0.30		(5 - 12)^2 (030) =
3	+20%	0.25
4	+40%	0.20
TOTAL		1.00		_____

Risk = (Variance)^0.5

1. The expected return is _____%

2. The Risk = _____ %

3. Based on one standard deviation the return could be as high as ____ % or as low as _____ %

4. What is the level of certainty when using only One Standard Deviation? Meaning?

Answer rating: 100% (QA)

1 The expected return Expected return ... View the full answer