7. Expected return and standard deviation (S7.2) A game of chance offers the following odds and payoffs. Each play of the game costs $100, so the net profit per play is the payoff less $100.

Year Nominal Return (%) Inflation (%)

2015 −41.4 10.7 2016 66.2 6.3 2017 26.9 2.9 2018 15.0 2.7 2019 32.6 3.7 2020 2.1 3.7