probability for this investment
October 5th, 2022
The following table gives the anticipated one-year rates of return from a certain investment and their associated probabilities.
Rate of Return
X, % Probability,
a) Calculate the expected rate of return, E(X).
b) Calculate the Variance and the Standard deviation of the returns.
c) What’s the probability for this investment to yield a return of less than 10 %?
d) What’s the probability for the returns of this investment to be between at least 10 % and at most 25 %?