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 1 year ago

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