What is the confident of variation of an investment

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Microsoft has a Beta of .32 and you are needing the required return. You know the risk free rate is 1.02%, and the return on the market is 6.44%. What is your required return in order to invest in this company?

What is the Confident of Variation of an investment given at standard deviation of 3.2%, and the following outcomes:

outcome one: probability .41 return 21%

outcome two: probability .21 return -10%

 

outcome three: probability .38 return -1%

Reference no: EM13923008

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