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Expected rates of return and standard deviation of the returns

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You are considering a security with the following possible rates of return:
Probability Return (%)
0.20 9.6
0.30 12.0
0.30 14.4
0.20 16.8

Calculate the expected rate of return

Calculate the standard deviation of the returns

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Solution Summary

The solution calculates the expected rates of return and standard deviation of the returns.

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  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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