Describe the expected excess return

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For this question, first calculate all parts (a-d) without rounding the solutions. Then, when inserting your solutions in the fields, round to two decimals. Also, use dot as the decimal separator.

The following table shows the one-year return distribution of Startup, Inc.

Probability

0.4

0.2

0.2

0.1

0.1

Return

0.4

-0.75

-0.5

-0.25

10

a. The expected return is Answer

b. The standard deviation is Answer 

c. Given a risk-free rate of 3%, the expected excess return is Answer 

d. The Sharpe ratio is Answer

Reference no: EM133115767

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