Question

Use the below information to answer the following question(s). Write the answer in percentage format and round to 2nd decimal (Ex. 12.34%)

You are considering investing in a project with the following possible outcomes:

STATES	PROBABILITY	A	B
BOOM	10%	25%	-5%
GROWTH	50%	16%	5%
DECLINE	30%	2%	15%
DEPRESSION	10%	-25%	30%

1. Calculate the expected rate of return for investment B, only
2. Calculate the standard deviation of returns for investment B.

Answer 1

Ans:-

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