An investment will cost $1,500 today. You have estimated the following probability distribution for the value of the investment one year from now: Probability 30% 60% 10% Value at the end of the year $1,680 $1,650 $1,425 Calculate the expected rate of return and the standard deviation of the returns for the 1-year holding period.

Sep 8, 2023

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An investment will cost $1,500 today. You have estimated the following probability distribution for the value of the investment one year from now: Probability 30% 60% 10% Value at the end of the year $1,680 $1,650 $1,425 Calculate the expected rate of return and the standard deviation of the returns for the 1-year holding period.
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