Calculate the expected return - the standard deviation and


Question 1:

Mr Anderson has received a large number of shares as part of his inheritance fro his late mothers estate.

State of the economy

Probability

Estimated return

Boom

0.10

25%

Growth

0.20

10%

Stable

0.50

15%

Recession

0.20

-12%

Calculate the expected return

The standard deviation

The variance

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Financial Management: Calculate the expected return - the standard deviation and
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