Explore BrainMass

Explore BrainMass

    Expected rates of return and standard deviation of the returns

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    © BrainMass Inc. brainmass.com June 3, 2020, 10:56 pm ad1c9bdddf
    https://brainmass.com/business/finance/expected-rates-return-standard-deviation-returns-257077

    Solution Summary

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

    $2.19

    ADVERTISEMENT