Calculate the expected return and standard deviation of returns…
Expected Value
July 9, 2019Classify as nominal, ordinal, interval, or ratio level of measurement
July 9, 2019Calculate the expected return and standard deviationof returns for asset A are (See below.)
Possible Outcomes Probability Returns (%)
Pessimistic 0.25 5
Most likely 0.55 10
Optimistic 0.20 13
The expected return for A is
E(A) = 0.25*5% + 0.55*10% + 0.20*13% …
Expected return and standard deviation of returns are calculated. The solution is detailed and well presented. The response received a rating of “5/5” from the student who originally posted the question.
