Problem:
Consider a share investment which has four possible returns: -5%, -2%, 5%, 10%. The probability of each of these returns occurring is respectively: 0.4, 0.1, 0.2, 0.3.
(a) What is the expected return for the investment?
(b) What is the risk of the investment to 2 decimal places?
Extra Information:
This question basically belongs to the Finance as well as it describes about computation of expected return on investment and the risk of the investment