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Compute the expected return and standard deviation of the forecasted returns below for I-View, Inc. Using a normal distribution show the risk profile...

Compute the expected return and standard deviation of the forecasted returns below for I-View, Inc.  Using a normal distribution show the risk profile for this investment.

 

State of Nature Probability Return

Best Case .15 18%

Most Likely .68 9%

Worst Case .17 -5%

Top Answer

First you need find the expected return . Expected return = Sum of (Probability*Return) = ( .15 * 18 %) + ( .68 * 9 %) + (... View the full answer

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