The following table gives the anticipated 1-year rates of return from a certain investment and their probabilities.

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The following table gives the anticipated 1-year rates of return from a certain investment and their probabilities.
ANTICIPATED 1 -YEAR RATE OF RETURN
FROM A CERTAIN INVESTMENT
The following table gives the anticipated 1-year rates of return

a. What is the expected rate of return from this investment?
b. Find the variance and standard deviation of the rate of return.
c. Find the skewness and kurtosis coefficients.
d. Find the cumulative distribution function (CDF) and obtain the probability that the rate of return is 10 percent or less.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Essentials of Econometrics

ISBN: 978-0073375847

4th edition

Authors: Damodar Gujarati, Dawn Porter

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