Explore BrainMass

Explore BrainMass

    Finding the Expected Return Value and Standard Deviation Giv

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

    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.

    © BrainMass Inc. brainmass.com June 4, 2020, 2:58 am ad1c9bdddf
    https://brainmass.com/business/finance/finding-expected-return-value-standard-deviation-490744

    Solution Summary

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

    $2.19

    ADVERTISEMENT