Expected Values (EV)

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May 17, 2016 at 12:26 pm #315441
vaishna006
Member
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Consider the potential returns and the probability of returns from the investment.

Returns:

8%
10%
12%

Probability of return:
0.25
0.5
0.25

Q. Calculate the expected value and the Std deviation of the investment?

I’ve already calculated the EV but I’m having trouble with the Std Deviation.
Help please!
May 18, 2016 at 7:58 am #315560
John Moffat
Keymaster
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You cannot be asked to calculate the standard deviation in Paper F5 – it is not in the syllabus!
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