Question 3: Angela Jones would like to invest in gold and is aware that...

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Finance

Question 3:

Angela Jones would like to invest in gold and is aware that the returns on such an investment can be quite volatile and risky. Use the following table of states, and probabilities, and returns to determines the expected return and standard deviation on Angelas gold investment.

Probability

Return

Boom 0.1

36%

Good 0.2

19%

Ok 0.3

11%

Level 0.2

4%

Slump 0.2

-27%

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