Compute the standard deviation for each of the three years

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Reference no: EM13335402

The Oklahoma Pipeline Company projects the following pattern of inflows from an investment. The inflows are spread over time to reflect delayed benefits. Each year is independent of the others.

Year 1				Year 5				Year 10

Cash inflow		Probability		Cash inflow		Probability		Cash inflow		Probability
	55		.20		45		.20		35		.40
	70		.60		70		.40		70		.20
	85		.20		95		.40		105		.40

The expected value for all three years is $70.

Compute the standard deviation for each of the three years

Reference no: EM13335402

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