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    Standard Deviaion & Probability

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    Problem 16-8. Business and Financial Risk Here are the estimated ROE distributions for Firms A, B, and C:

    PROBABILITY

    ________________________________________

    0.1
    0.2 0.4 0.2 0.1
    ________________________________________
    Firm A:
    0.0%
    5.0%
    10.0%
    15.0%
    20.0%

    Firm B:
    - 2.0 5.0 12.0 19.0 26.0
    Firm C:
    - 5.0 3.0 16.0 23.0 30.0
    ________________________________________
    Calculate the expected value and standard deviation for Firm C's ROE. = 10.0%, = 5.5%; = 12.0%, = 7.7%. Round the answers to the nearest hundredth.
    a. =

    b. =?

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    https://brainmass.com/business/business-math/standard-deviaion-probability-275692

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    The solution computes standard deviation of ROE for 3 companies in a given scenario.

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