Distribution of possible returns-standard deviation

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Reference no: EM13890163

You are going to invest all of your funds in one of three projects with the following distribution of possible returns:

Project 1 Project 2

Standard Deviation 12% Standard Deviation 19.5%

Probability Return Probability Return

50% Chance 20% 30% Chance 30%

50% Chance -4% 40% Chance 10%

30% Chance -20%

Project 3

Standard Deviation 12%

Probability Return

10% Chance 30%

40% Chance 15%

40% Chance 10%

10% Chance -21%

Reference no: EM13890163

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