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Calculate the Expected Value, the Expected Return, the Variance and the Standard

Question 86

Essay

Calculate the expected value, the expected return, the variance and the standard deviation of an asset that requires a $1000 investment, but will return $850 half of the time and $1,250 the other half of the time.

Correct Answer:

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Expected value is = 0.5($850) + 0.5($1,2...

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