00:01
So suppose an investor is concerned about a business choice in which there are three prospects, the probability and returns are given below.
00:12
And we're looking for the expected value of uncertain investments and the variance.
00:18
So we're giving the probability and the returns in the table.
00:22
An investor wants to know the expected return on variance from this business.
00:28
We're giving the probability and the return.
00:31
And for 0 .4, the return is $100.
00:38
For a 0 .3 probability, the return is $30.
00:42
And for a 0 .3 probability, the return is minus $30.
00:46
So let's start with the first question, the expected value of return...