# Calculation Of Expected Return And Risk On An Investment

Question

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?

Summary

The question belongs to Finance and it discusses about calculation of expected return on an investment and the risk of the investment

Total Word Count 62

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