question archive (Examination level if combined with Questions 5 and 6) The probability of a hot summer is 0
(Examination level if combined with Questions 5 and 6) The probability of a hot summer is 0
Subject:FinancePrice:2.86 Bought12
(Examination level if combined with Questions 5 and 6) The probability of a hot summer is 0.2. The probability of a moderately warm summer is 0.6, whereas the probability of a wet and cold summer is 0.2. If a hot summer occurs then the return on shares in the Ice Cream Manufacturing Company will be 80 per cent. If moderately warm the return will be 15 per cent, and if cold 2 per cent. What is the expected return? ? What is the standard deviation of that return?
