Fina 4011 exam 2 - Study guides, Class notes & Summaries

FINA 4011 - EXAM #2 questions with correct answers

The probability distribution lets us derive measurements for both the reward and the risk of the investment. The reward from the investment is its __________, which you can think of as the average return you would earn if you were to repeat an investment in the asset many times. a) expected return b) variance c) standard deviation d) effective annual rate - correct answer a) expected return __________ is a probability weighted average of squared deviation from expected value. a) Normal d...