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Expected Return: Discrete Distribution
A stock's return has the following distribution:
Demand for the Company's Products | Probability of This Demand Occurring | Rate of Return if This Demand Occurs (%) |
Weak | | 0.1 | | -30 | % |
Below average | | 0.2 | | -10 | |
Average | | 0.4 | | 8 | |
Above average | | 0.2 | | 20 | |
Strong | | 0.1 | | 70 | |
| | 1.0 | | | |
Calculate the stock's expected return. Round your answer to two decimal places.
______ %
Calculate the standard deviation. Do not round intermediate calculations. Round your answer to two decimal places.
______%
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