Calculating the variance and standard deviation: Barbara is considering investing in a stock and is aware...

Calculating the variance and standard deviation: Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Using the table of returns and probabilities below, find the expected return and the standard deviation of the return on Barbara’s investment.

	Probability	Return
Boom	0.1	25.00%
Good	0.4	15.00%
Level	0.3	10.00%
Slump	0.2	-5.00%

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Calculations-

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jeff jeffy answered 2 years ago

Laura is considering investing in a company's stock and is aware that the return on that...

Laura is considering investing in a company's stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Probability Return Boom 0.3 25.00% Good 0.1 15.00% Level 0.3 10.00% Slump 0.3 -5.00% Use the table of returns and probabilities above to determine the expected return on Laura’s investment? (Round answer to 3 decimal places, e.g. 0.076.)...

calculate the mean daily return, Variance and standard deviation for each stock?

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