Unformatted text preview: Step 2 – For each outcome (row), subtract the expected return from the individual return outcome (see Table 5.5, pg. 203 to see this worked for you). Step 3 – Square the differences from Step 2. Step 4 – Multiply the squared differences from Step 3 by the associated probabilities. Step 5 – Sum the products from Step 4. Step 6 – Take the square root of the sum from Step 5. On HP 10BII calculator, when number is in display, use SHIFT and the [  ] key to get the square root....
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 Spring '12
 JohnZietlow
 Finance, Addition, Standard Deviation, Probability theory, Elementary arithmetic

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