This paper circulates around the core theme of What is the expected return and the standard deviation of returns? together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
1.1 An investment has probabilities of 0.1, 0.2, 0.35, 0.25, and 0.1 for giving returns equal to… 1 answer below » 1.1 An investment has probabilities of 0.1, 0.2, 0.35, 0.25, and 0.1 for giving returns equal to 40%, 30%, 15%, −5%, and −15%. What is the expected return and the standard deviation of returns? 1.2 Suppose that there are two investments with the same probability distribution of returns as in Problem 1.1. The correlation between the returns is 0.15. What is the expected return and standard deviation of return from a portfolio where money is divided equally between the investments? Nov 16 2015 11:34 AM
