Jerome J. Jerome is considering investing in a security that has the following distribution of possible one-year

Question:

Jerome J. Jerome is considering investing in a security that has the following of possible one-year returns:

a. What is the expected return and standard deviation associated with the investment?
b. Is there much "downside" risk? How can you tell?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...