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Compute expected return and standard deviation of returns

Expected Return and Standard Deviation. Assuming the following probability distribution of the possible returns, calculate the expected return (r) and the standard deviation (s) of the returns.

Probability (pi)	Retain (ri)
0.1	-20%
0.2	5%
0.3	10%
0.4	25%

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Finance Basics: Compute expected return and standard deviation of returns

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Compute expected return and standard deviation of returns

Reference No:- TGS0679344

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Compute expected return and standard deviation of returns

Reference No:- TGS0679344

Recent Questions Asked Finance Basics

Q : What is stock-s beta coefficient for given expected return

Q : Actual warranty costs incurred

Q : What is the market-s expected return for next year

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