Compute the Expected Return and Standard Deviation Given These Four

question 56

Multiple Choice

Compute the expected return and standard deviation given these four economic states, their likelihoods, and the potential returns:

• A) 9.5%; 32.43%
• B) 9.5%; 21.96%
• C) 9.5%; 18.97%
• D) 9.5%; 29.18%

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Definitions:

B2C

Business-to-Consumer, a model where businesses sell products or services directly to individual consumers.

C2C

Consumer-to-Consumer (C2C) refers to transactions conducted between two consumers, typically facilitated by a third-party platform such as online marketplaces.

Fundamental Purpose

The core reason or primary objective behind an organization's existence, actions, or proposals.

Social Media

Websites and applications that enable users to create and share content or participate in social networking.