Calculate the expected return and risk

Reference no: EM132165308

Question: The Graham Telephone Company may invest in new switching equipment. There are three possible outcomes, having net present worth of $6570, $8590, and $9730. The outcomes have probabilities of 0.3, 0.5, and 0.2, respectively. Calculate the expected return and risk measured by the standard deviation associated with this proposal.

Reference no: EM132165308

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