Suppose that a security costs 3000 today and pays off some, Ask an Expert

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Suppose that a security costs $3,000 today and pays off some amount b in one year. Suppose that b is uncertain according to the following table of probabilities: b: $3,000 $3,300 $3,600 $3,900 $4,200 Probability: 0.1 0.2 0.3 0.2 0.2

Calculate the expected return. Show your work.

Calculate the standard deviation of the return. Show your work.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91272798

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