Denard has two investment opportunities. He can invest in The Sunglasses Company or The Umbrella Company. What is the expected return and standard deviation of each company?
State of the Economy
|
Probability of the State
|
Expected Return Sunglasses Company
|
Expected Return Umbrella Company
|
Sunny
|
.50
|
25%
|
0%
|
Rainy
|
.50
|
0%
|
25%
|