You are considering investing in a project with the following possible outcomes:
States
Probability of
Occurrence
Investment
Returns
State 1: Economic boom 18% 20%
State 2: Economic growth 42% 16%
State 3: Economic decline 30% 3%
State 4: Depression 10% -25%
Calculate the expected rate of return and standard deviation of returns for this investment,
respectively.
A) 8.72%, 12.99% B) 7.35%, 12.99% C) 2.18%, 1.69% D) 3.50%, 1.69%
A
You might also like to view...
Audience members will perceive you as more credible if
a. you keep your dialect. b. you entirely change your dialect. c. you adapt your dialect. d. you don’t care about your dialect.
A proxy is a document giving one party the authority to act for another party, including the power to vote shares of common stock. Proxies can be important tools relating to control of firms.
Answer the following statement true (T) or false (F)
Discuss the four common service recovery mistakes made by organizations
What will be an ideal response?
Employees who earn performance-based pay are more
A. mobile. B. satisfied. C. educated. D. cynical.