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R = -12%, 17%,25%,27% Probability = 10%, 20%,40%,30% Calculate the average return and standard deviation using...

R = -12%, 17%,25%,27%

Probability = 10%, 20%,40%,30%

Calculate the average return and standard deviation using probability

Ignore probability and calculate average return and standard deviation using once population and once sample

Solutions

Expert Solution

Weighted Avg Return = Sum [ Prob * ret ]
Stock Weight Ret WTd Ret
A 0.10 -0.1200             -0.0120
B 0.20 0.1700               0.0340
C 0.40 0.2500               0.1000
D 0.30 0.2700               0.0810
Weighted Return               0.2030

SD = SQRT [ sum [ Prob * ( X - Avg X)^2 ] ]

jeff jeffy answered 2 years ago
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