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    Finding the Expected Return Value and Standard Deviation Giv

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    The expected value and the standard deviation of returns for asset A is

    Possible Outcomes Probabilities Returns(%)
    Pessimistic .25 10
    Most Likely .45 12
    Optimistic .30 16

    A) 12.7 percent and 2.3 percent
    B) 12 percent and 4 percent
    C) 12.7 percent and 4 percent
    D) 12 percent and 2.3 percent.

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    Solution Summary

    This solution illustrates how to find the expected return value and standard deviation of the expected return value given probabilities.