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.
Education
- MBA, Indian Institute of Finance
- Bsc, Madras University
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