Solution-Calculate the expected return and the standard

Calculate the expected return and the standard deviation

Reference no: EM133204914

John is considering investing in a share and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Using the table of returns and probabilities below, calculate the expected return and the standard deviation of the return on Cindy's investment.

Situation	Probability	Return
Boom	0.5	25%
Good	0.2	15%
Level	0.2	10%
Slump	0.1	-5%

Reference no: EM133204914

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Calculate the expected return and the standard deviation

Reference no: EM133204914

Reference no: EM133204914

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