In: Finance
The Oklahoma Pipeline Company projects the following pattern of
inflows from an investment. The inflows are spread over time to
reflect delayed benefits. Each year is independent of the
others.
Year 1 | Year 5 | Year 10 | |||||||||||||||||
Cash Inflow | Probability | Cash Inflow | Probability | Cash Inflow | Probability | ||||||||||||||
$ | 85 | 0.40 | $ | 60 | 0.35 | $ | 50 | 0.30 | |||||||||||
110 | 0.20 | 110 | 0.30 | 110 | 0.40 | ||||||||||||||
135 | 0.40 | 160 | 0.35 | 170 | 0.30 | ||||||||||||||
The expected value for all three years is $110.
Compute the standard deviation for each of the three years.
(Do not round intermediate calculations. Round your answer
to 2 decimal places.)
year 1
year 5
year 10