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Expected return and standard deviation

Please explain how to calculate the expected return and standard deviation of returns when your only given possible outcomes and probability returns.

Possible Outcomes Probability Returns (%)
Pessimistic 0.25 5
Most likely 0.55 10
Optimistic 0.20 13

Solution Preview

The expected return is calculated as the sum of (probability X returns) for each state
The expected ...

Solution Summary

The solution explains how to calculate expected return and standard deviation

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