In: Finance
2. You have been given this probability distribution of the holding period return for KMP stock: State Probability Return 1 30% 20% 2 60% 12% 3 10% -5% What are the expected return and standard deviation for KMP stock?
calculations-
Expected Return = Sum of( Holding period returns*probability) | |||||||
Standard deviation= sqrt(Variance) | |||||||
Variance = Sum of ((Holding period return -Expected return)^2*probability) Please upvote if the ans is helpful.In case of doubt,do comment.Thanks. |