Answer:
The Expected return is $80,600
The standard deviation of the analyst’s profit is $191854.63.
Explanation:
the expected return
= $1,3 million*[0.031 + 1.0*Rm] - 1,3 million*[-0.031 + 1.0*Rm]
= $403,000 + $1,300,000Rm + $403,000 - $1,300,000Rm
= $80,600
Therefore, The Expected return is $80,600
the varience = 20*[(130,000*0.33)^2]
= $36808200000
Therefore, The standard deviation of the analyst’s profit is $191854.63.
