Denard has two investment opportunities. He can invest in The Sunglasses Company or The Umbrella Company. What is the expected return and standard deviation of each company?
|
State of the Economy
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Probability of the State
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Expected Return Sunglasses Company
|
Expected Return Umbrella Company
|
|
Sunny
|
.50
|
25%
|
0%
|
|
Rainy
|
.50
|
0%
|
25%
|