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Consider the following scenarios for Space Corp.’s likely equity returns per year: Scenario                Probability                Expected Returns Really Bad 15%                           (5%) Bad 20%                           2.5% Likely 30%                           7.5% Better 20%                           12.5% Really Good 15%                           20% What is the...

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Finance

  1. Consider the following scenarios for Space Corp.’s likelyequity returns per year:

Scenario                Probability                ExpectedReturns

Really Bad15%                           (5%)

Bad20%                           2.5%

Likely30%                           7.5%

Better20%                           12.5%

Really Good15%                           20%

What is the expected return for thissecurity per year?  

What is the standard deviation ofexpected returns?  

What are the expected returns with a90% confident interval, if this follows the normaldistribution?        

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Consider the following scenarios for Space Corp.’s likelyequity returns per year:Scenario                Probability                ExpectedReturnsReally Bad15%                           (5%)Bad20%                           2.5%Likely30%                           7.5%Better20%                           12.5%Really Good15%                           20%What is the expected return for thissecurity per year?  What is the standard deviation ofexpected returns?  What are the expected returns with a90% confident interval, if this follows the normaldistribution?        

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