Consider a share investment which has four possible returns, Finance Basics

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Consider a share investment which has four possible returns

Problem:

Consider a share investment which has four possible returns: -5%, -2%, 5%, 10%. The probability of each of these returns occurring is respectively: 0.4, 0.1, 0.2, 0.3.

(a) What is the expected return for the investment?

(b) What is the risk of the investment to 2 decimal places?

Extra Information:

This question basically belongs to the Finance as well as it describes about computation of expected return on investment and the risk of the investment

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Finance Basics: Consider a share investment which has four possible returns

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